Repeat M7 16, except assume the 2015 ending inventory was over stated by $ 100,000 Refer M7 16 Assume the 2015 ending inventory of Sheas Shrimp Shack was understated by $ 10,000 Explain how this error would affect the amounts reported for cost of goods sold and gross profit for 2015 and 2016 ...

2015 Beginning Inventory Accurate Purchases of merchandise during the year Accur ...

Repeat M7-16, except assume the 2015 ending inventory was over stated by $ 100,000. Refer M7-16 Assume

Question:

Repeat M7-16, except assume the 2015 was over stated by $ 100,000.
Refer M7-16
Assume the 2015 of Shea’s Shrimp Shack was understated by $ 10,000. Explain how this error would affect the amounts reported for cost of goods sold and gross profit for 2015 and 2016.
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 =...