Question: A firm s Dec. 3 1 st year - end balance sheet showed $ 7 2 , 0 0 0 of inventory. The firm uses

A firms Dec. 31st year-end balance sheet showed $72,000 of inventory. The firm uses the perpetual inventory system. After reviewing the firms records, the auditor noted the following items which had not been included when calculating this amount because it was not in the warehouse during the physical count: 1. On Dec. 31st the firm was notified that $12,600 of inventory purchased on account from a wholesaler had been shipped on Dec. 30th, FOB shipping point. No journal entry recorded. 2. On Dec. 31st, inventory costing $5,200 was shipped to a customer in Australia FOB destination. Sales Revenues were recorded at 50% mark-up on cost.3. On Dec. 31st, inventory costing $14,000 was shipped to a customer FOB shipping point. Sales Revenues were recorded at 50% mark-up on cost. Determine the effect of these errors on the companys financial statements as of Dec. 31, CY. Submit your answers on Blackboard. Assets Liabilities Equity Net Income

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