Alpha received a statement of account from a supplier Beta, showing a balance to be paid of $8,950. Alpha’s
payables ledger account for Beta shows a balance due to Beta of $4,140.

Investigation reveals the following:

(1)    Cash paid to Beta $4,080 has not been allowed for by Beta.
(2)    Alpha’s ledger account has not been adjusted for $40 of cash discount disallowed by Beta.
(3)    Goods returned by Alpha $380 have not been recorded by Beta.

What discrepancy remains between Alpha’s and Beta’s records after allowing for these items?

A    $9,310
B    $390
C    $310
D    $1,070

C (8,950 – 4,080 – 380) – (4,140 + 40) = 310

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