In a trial balance for Pina Traveler Corporation as of April 30, 2017, if the trial balance does not balance and an examination reveals an error where cash received from a customer on account was incorrectly recorded, which of the following is the most likely impact of this error on the trial balance?
- The trial balance will show an overstatement of the cash balance and an understatement of accounts receivable.
- The trial balance will show an understatement of the cash balance and an overstatement of accounts payable.
- The trial balance will show a correct balance if the error was in the service revenue account.
- The trial balance will show an overstatement of the equipment balance and an understatement of the cash balance.