Collie Company incorrectly included $23,000 of goods held on consignment for Retriever Company in Collie's beginning inventory

Question:

Collie Company incorrectly included $23,000 of goods held on consignment for Retriever Company in Collie's beginning inventory for the year ended December 31, 2016. The ending inventory for 2016 and 2017 was correctly counted.

(a) What is the impact on the 2016 financial statements?

(b) What is the impact on the 2017 financial statements?

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 =...