Effects of Errors

The following are independent errors made by a company that uses a periodic inventory system:

a$.$ Failure to record a purchase of $$10,000$ inventory on credit; however, inventory was properly counted at the end of the period. Assume the error was discovered prior to any payment for the purchase.

b$.$ Expensed the purchase of a machine of $$50,000.$ The machine has a $10$ year useful life with no salvage value.

c$.$ Failure to accrue wages of $$8,000.$ Wages had not been paid at the time the error was discovered.

d$.$ Failure to record an allowance for uncollectibles of $$25,000.$ The error was discovered prior to the accrual for bad debt in the following year.

e$.$ Included collections in advance of $$100,000$ as revenue.

f$.$ Included payments of $$12,000$ advance as expenses.

g$.$ Failure to accrue warranty costs of $$14,000.$

h$.$ Failure to record depreciation expense of $$6,000$ on assets purchased during the year.

Required:

Indicate the effect of each of the preceding errors on the company's assets, liabilities, shareholders' equity, and net income in the year in which the error occurs. State whether the error causes an overstatement $(+),$ an understatement $(-),$ or no effect $($NE$).$

Assets

a$.$

b$.$

c$.$

d$.$

e$.$

f$.$

g$.$

h$.$