The accounting records of Oriental Rugs show these data (in thousands). As the auditor, you discovered that

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The accounting records of Oriental Rugs show these data (in thousands). As the auditor, you discovered that the ending inventory for 2012 was overstated by $100,000 and that the ending inventory for 2013 was understated by $50,000. The ending inventory at December 31, 2014, was correct.
The accounting records of Oriental Rugs show these data (in

Requirements
1. Show correct income statements for each of the three years.
2. How much did these corrections add to, or take away from, Oriental Rugs' total net income over the three-year period? How did the corrections affect the trend of net income?

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Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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