Question: Assume that in year 1, the ending merchandise inventory is overstated by $50,000. If this is the only error in years 1 and 2, indicate

Assume that in year 1, the ending merchandise inventory is overstated by $50,000. If this is the only error in years 1 and 2, indicate which items will be understated, overstated, or correctly stated for years 1 and2.

Year 1 Year 2 Ending merchandise inventory Beginning merchandise inventory Cost of goods sold Gross profit Net income Ending owner's capital

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