Indicate in each of the spaces provided the effect of the described errors on the various elements of a company's financial statements. Use the following codes: O = amount is overstated; U = amount is understated; NE = no effect. Assume a periodic inventory system. Accounts Accounts Inventory Sales Costs of Receivable Payable Goods Sold 

1. Goods in transit shipped "f.o.b. destination" by supplier were recorded as a purchase but were excluded from ending inventory. 

2. Goods held on consignment were included in inventory count and recorded as a purchase. 

3. Goods in transit shipped "f.o.b. shipping point" were not recorded as a sale and were included in ending inventory. 

4. Goods were shipped and appropriately excluded from ending inventory but sale was not recorded.

Answer rating: 100% (QA)

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