Question

Bad debt expense of $500 recorded as $5,000 is an example of:

A. a classification error
B. use of an incorrect estimate
C. a slide error
D. a transposition error

Answer 1

The correct answer is C. a slide error. A slide error occurs when a decimal point is moved to another place by mistake.

Step-by-step explanation:

The correct answer is C. a slide error. A slide error occurs when a decimal point is moved to another place by mistake. In this case, recording a bad debt expense of $500 as $5,000 would be a slide error because the decimal point was moved one place to the right. This can result in a significant discrepancy between the actual amount and the recorded amount.