13. Net Income Error in Ending Inventory Year per Books $50,000 52,000 54,000 56,000 58,000...
70.2K
Verified Solution
Link Copied!
Question
Accounting
13. Net Income Error in Ending Inventory Year per Books $50,000 52,000 54,000 56,000 58,000 60,000 Overstated 3,000 Overstated 9,000 Understated 11,000 No error Understated 6,000 Overstated 8,000 2011 2012 2013 2014 2015 2016 Determine the effect on: 2012 Net income_ 12/31/14 R/E 2015 CGS 2016 NI 12/31/16 R/E The Timmons Company made the following two errors in counting ending inventory 8 1. Understated 12/31/12 inventory by $2,000. 2. Overstated 12/31/13 inventory by $1,000. The combination of these two errors will cause: 12/31/12 RE 2013 CGS 2013 NI 2014 NI Instructions: Compute the ending inventory at cost as of January 31, 2017, using the retail method which approximates lower of cost or market Given the following errors: 7 Understated Overstated 1) Sales Discounts 2) Sales 3) Beginning Inventory 4) Interest Expense 5) Ending Inventory 6) Purchase Discounts 2 49 5 GROSS PROFIT NET SALES ET INCOME CGS
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
