Yeliw Enterprises purchases inventory amounting to 512,000, and records the expenditure as a debit to Office Equipment What would be the effect of this error on the balance sheet and income statement in the period of the purchase, assuming the inventory is sold during the year (Assume the sale and ...

On the balance sheet the effects of the error are 1 the equipment account ...

Yeliw Enterprises purchases inventory amounting to 512,000, and records the expenditure as a debit to Office Equipment.

Question:

Yeliw Enterprises purchases inventory amounting to 512,000, and records the expenditure as a debit to Office Equipment. What would be the effect of this error on the and income statement in the period of the purchase, assuming the inventory is sold during the year? (Assume the sale and related were correctly recorded when the inventory was sold.)
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...