A $130 credit to Supplies was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?

A. Supplies, overstated $260; Fees Earned, understated $130.
B. Supplies, overstated $130; Fees Earned, overstated $130.
C. Supplies, understated $130; Fees Earned, overstated $130.
D. Supplies, understated $260; Fees Earned, overstated $130.
E. Supplies, overstated $130; Fees Earned, understated $130.


Answer: B

Business

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