6 Ordan received a statement from one of its suppliers, Alta, showing a balance due of $3,
6 Ordan received a statement from one of its suppliers, Alta, showing a balance due of $3,980. The amount due
according to the payables ledger account of Alta in Ordan’s records was only $230.
Comparison of the statement and the ledger account revealed the following differences:
1 A cheque sent by Ordan for $270 has not been allowed for in Alta’s statement.
2 Alta has not allowed for goods returned by Ordan $180.
3 Ordan made a contra entry, reducing the amount due to Alta by $3,200, for a balance due from Alta in Ordan’s
receivables ledger. No such entry has been made in Alta’s records.
What difference remains between the two companies’ records after adjusting for these items?
A $460
B $640
C $6,500
D $100
3,980 – 270 – 180 – 3,200 = 330 : difference 100
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