Question: a) prepare correct income statement data for the 2 years b)What is the cumulative effect of the inventory error on total gross profit for the

a) prepare correct income statement data for the 2 years

b)What is the cumulative effect of the inventory error on total gross profit for the 2 years?

c) Explain in a letter to the president of Smart Watch Company what has happened, that is, the nature of the error and its effect on the financial statements. a) prepare correct income statement data for the 2 years b)What

a) prepare correct income statement data for the 2 years b)What

E6.11 (LO 3), AN Writing Smart Watch Company reported the following Prepare correct income sratements: income statement data for a 2 -year period. Smart uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31,2021 , was overstated $6,000. Instructions a. Prepare correct income statement data for the 2 years. b. What is the cumulative effect of the inventory error on total gross profit for the 2 years? c. Explain in a letter to the president of Smart Watch Company what has happened, that is, the nature of the error and its effect on the financial statements

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