Beacon Limited has a calendar-year accounting period. On June 15, 2021, the company's controller discovered that...

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Beacon Limited has a calendar-year accounting period. On June 15, 2021, the company's controller discovered that a supplier's invoice for $5,000 for purchases made in 2019 was not recorded until 2020. But the physical count of inventory on December 31, 2019 included the purchase. Regarding the effects of this error on the 2020 financial statements, which statement is true? Beginning balance of Retained Earnings understated by $5,000 Beginning balance of Account Payable understated by $5,000 Cost of goods sold understated by $5,000 Net income overstated by $5,000 None of the presented options Beacon Limited has a calendar-year accounting period. On June 15, 2021, the company's controller discovered that a supplier's invoice for $5,000 for purchases made in 2019 was not recorded until 2020. But the physical count of inventory on December 31, 2019 included the purchase. Regarding the effects of this error on the 2020 financial statements, which statement is true? Beginning balance of Retained Earnings understated by $5,000 Beginning balance of Account Payable understated by $5,000 Cost of goods sold understated by $5,000 Net income overstated by $5,000 None of the presented options

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Answers Correct option is 2 Beginning balance of Account Payable understated by 5000 Since 2019 i... View the full answer