A purchase discount was recorded as a credit to the Purchases account and a debit to Accounts payable. This error will cause:

A purchase discount was recorded as a credit to the Purchases account and a debit to Accounts payable.  This error will cause:

A) Net income to be overstated

B) Net income to be understated

C) Net income to be not affected

D.)  Total assets overstated

A purchase discount was recorded as a credit to the Purchases account and adebit to Accounts payable. This error will cause:A) Net income to be overstatedB) Net income to be understatedC) Net…