Question: If there is an error that understates the ending inventory
If there is an error that understates the ending inventory of $ 255,000 of Year 1 by $ 3,500, what is the effect on net income? What will be the impact on the net income of Year 2?
Answer to relevant QuestionsWhich inventory methods are the same whether the perpetual or periodic inventory system is used? How do the other two methods differ when the perpetual inventory system is used?Landor Office Supplies records inventory on a periodic basis and has a July beginning inventory of model 77 desk lamps consisting of 188 units at $ 84.50 each. Purchases and sales during July are as follows: July 5 Sold 15 ...Blake Company’s beginning inventory of R317 is 160 units at a cost of $ 45 each. Dates of purchases and sales for a three- month period are as follows:Blake Company maintains a perpetual inventory record using the ...A large computer retailer has taken year-end inventory and has valued 80 Microgate X computers at $ 1,100 each, or $ 88,000—the original cost of the Microgate Xs. Current technologies have allowed the supplier to reduce ...Leslie Manufacturing Company purchased land adjacent to its factory for the installation of a holding area for equipment. Expenditures by the company were as follows: purchase price, $ 173,000; paving, $ 5,300; title search ...
Post your question