Question: AreaIf ending inventory in the current year is understated by $5,000, what is the effect of this understatement? a. Cost of goods sold is overstated

AreaIf ending inventory in the current year is understated by $5,000, what is the effect of this understatement? a. Cost of goods sold is overstated by $5,000. b. Retained earnings are overstated by $5,000. c. Income is overstated by $5,000. d. Cost of goods sold is understated by $5,000

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