? ? An item of inventory purchased this period for $15.00 has been incorrectly written down to

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An item of inventory purchased this period for $15.00 has been incorrectly written down to its current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is not true? O The closing inventory of the current year is understated. O Income of the following year will be understated. The cost of sales of the following year will be understated. O The current year's income is understated. Oriole Company, a wholesaler, budgeted the following sales for the indicated months: Sales on account Cash sales Total sales June $2817500. $2930000. $2870000. $2825000. $3000000 300000 $3300000 _July_ $3060000 330000 $3390000 August $3150000 420000 $3570000 All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. Merchandise purchases for July are anticipated to be An item of inventory purchased this period for $15.00 has been incorrectly written down to its current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is not true? O The closing inventory of the current year is understated. O Income of the following year will be understated. The cost of sales of the following year will be understated. O The current year's income is understated. Oriole Company, a wholesaler, budgeted the following sales for the indicated months: Sales on account Cash sales Total sales June $2817500. $2930000. $2870000. $2825000. $3000000 300000 $3300000 _July_ $3060000 330000 $3390000 August $3150000 420000 $3570000 All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. Merchandise purchases for July are anticipated to be