Question

A store accidentally priced an item at $20 instead of $30 and honored the mispricing.

Where should the store attribute the $10 difference?
Is it considered a loss or operating expense?
Thanks

Answer 1

Sales

Explanation:

Since it is mentioned that the store mistakenly priced an item at $20 instead of $30 so there is a difference of $10 so the price of sales is increased by $10 due to mispricing the value of the item so that it would be recorded at $30 rather than $20

Therefore in the given case neither it is considered as a loss nor an operating expense but as a sales and the same is to be relevant

Hence, the given options are incorrect