BACKGROUND: Improperly counting or recording inventory transactions can result in material financial statement errors.

REQUIRED: Barnett Manufacturing uses the periodic method to account for its inventory of raw materials. A physical count was completed on the afternoon of December $31,20$Y$4.$ Determine whether the following transactions create any $20$ Y $4$ inventory related errors in the financial statement elements below. Indicate the dollar value of any error and whether the account is overstated $($O$),$ understated $($U$),$ or if the transaction has no effect on the account listed $($NE$).$ No carry forward credit will be given for this problem.

ALL BOXES MUST HAVE AN ANSWER.

$\backslash$table$[[$Transaction$,\backslash$table$[[$Net$],[$Purchases$]],$A$/$P$,$Ending Inventory,A$/$R$,$Sales Revenue$],[$Not included in the physical inventory count is $$13,420$ of merchandise purchased on December $15.$ This merchandise was shipped F$.$O$.$B$.$ shipping point by the supplier on December $29$ and it arrived in January. The item was recorded as a purchase in $20$ Y $4.,,,,,],[$Included in the physical inventory count is merchandise that was sold on December $30,$ F$.$O$.$B$.$ destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $$12,800$ on December $31.$ The merchandise cost $$7,350$ and was received by the buyer on January $3.,,,,,],[$Included in the physical inventory count is merchandise that was sold f$.$o$.$b$.$ shipping point. The merchandise was shipped on December $31$ after it was counted. The invoice was prepared and recorded as a sale for $$18,900$ on December $31.$ The cost of the merchandise was $$10,520$ and was it received by the customer on January $5.,,,,,,],[$Included in the physical inventory count was merchandise received on December $31.$ The merchandise was purchased for $$15,630$ and was shipped f$.$o$.$b$.$ destination by the supplier. The invoice, which has not yet arrived, has not yet been recorded as a purchase.,,,,,$],[$$$10,438$ of inventory was included in the physical inventory count. The merchandise was being held on consignment for another company $($Barnett was the consignee$).,,,,,]]$