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 ...

The net income will also be decreased by 3500 because a de ...

If there is an error that understates the ending inventory of $ 255,000 of Year 1 by

Question:

If there is an error that understates the 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?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...