Question: (12 points) Green Trifle Bakery discovered some errors for 2020 and 2021. What would be the impact on net income for each year if
(12 points) Green Trifle Bakery discovered some errors for 2020 and 2021. What would be the impact on net income for each year if the errors were left undetected? Error 2020 2021 Ending inventory in 2020 was overstated, but correctly counted in 2021. [Select] [Select] [Select] Overstated Rent expense for 2020 was not accrued, and incorrectly recorded as an expense when paid in 2021. [Select] Understated No Effect Depreciation expense was incorrectly calculated in 2020, resulting in $1,000 of additional expense recorded. It was correctly calculated in 2021. Select ] [Select] Subscription revenue for 2021 was incorrectly recorded as revenue when it was received in 2020. [Select] [Select] Sales on accounts were not recorded when made in 2020, and recorded in 2021 when cash was received. [Select] [Select]
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