Question: Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The

Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The effect of this error on 2024s cost of goods sold (COGS) and net income (NI), respectively are:

A) COGS understated and NI understated

B) COGS overstated and NI overstated

C) COGS overstated and NI understated

D) COGS understated and NI overstated

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The effect of this error on 2024s cost of goods sold (COGS)...

Entity C uses a periodic inventory system. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The effect of this error on 2024's cost of goods sold (COGS)...

Entity C uses a periodic imvontory syatem. It ovorstated its purchases in 2024 due to a data entry error (a purchase was entored twice). The etifect of this error on 2024 s oost of goods sold (COGS)...

URGENT Entity F decided to write off a customers account because the customer had not paid in over five years. Entity F used the allowance method for recording bad debt expense, so the proper journal...

Entity C uses a periodicinventory systeme. It overstated its purchases in 2024 due to a data entry error (a purchase was entered twice). The effoct of this error on 2024 s cost of goots sold (COGS)...

Mykonos Traders purchased office furniture of R11 000 from Rail Furniture and paid with an electronic funds transfer. Mykonos Traders maintained a favourable bank balance. Prepare the BAE...

D Question 5 2 pts A debit to Sales Returns and Allowances is evidence of a O return of goods originally purchased on account O sale paid for with cash. O purchase of goods on account Question 6 2...

Citrin Corporation reported the following information related to 2017 and 2018: 2017 2018 Beginning inventory $ 634,400 $ 530,400 Purchases 1,899,990 2,450,500 Cost of goods available for sale $...

1) 2) 3) Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2024 before any adjusting entries or closing entries were prepared....

Held Bond Co. reports net income of $70,000. The income ratios are Held 60% and Bond 40%. Indicate the division of net income to each partner, and prepare the entry to distribute the net income.

Nestle rolls over a $25M loan priced at LIBOR3 on a 3 month basis. The company feels that interest rates are rising and that rates will be higher at the next roll-over in three months. Suppose the...

Which of the following best interprets the multiplicities between the purchases event and the inventory resource in the generic REA model of the purchase and payments process? Multiple select...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

(Appendices) AGING RECEIVABLES AND UNCOLLECTIBLE ACCOUNT EXPENSE. Perkinson Corporation sells paper products to a large number of retailers. Perkinsons accountant has prepared the following aging...

(Appendices) SALES RECORDED NET. Using the data in Exercise 6-27, assume that Nevada records sales gross. LO8 REQUIRED: 1. Prepare the entries to record this sale in Nevadas journal. 2. Prepare the...

(Appendices) INVENTORY TURNOVER. A recent annual report for The Limited shows cost of goods sold for the year of approximately $5,286 million and average inventory of approximately $769 million...