A company using the periodic inventory system correctly recorded a purchase of merchandise, but the merchandise was not included in the physical inventory count at the end of the accounting period The error caused which of the following An understatement of both net income and inventory An overstatement of inventory, purchases, and accounts payable An understatement of inventory, purchases, and accounts payable An overstatement of net income and inventory

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Question: A company using the periodic inventory system correctly recorded a purchase of merchandise, but the merchandise was not included in the physical inventory count at

A company using the periodic inventory system correctly recorded a purchase of merchandise, but the merchandise was not included in the physical inventory count at the end of the accounting period. The error caused which of the following?

		An understatement of both net income and inventory.
		An overstatement of inventory, purchases, and accounts payable.
		An understatement of inventory, purchases, and accounts payable.
		An overstatement of net income and inventory.

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