A firm counting its inventory overlooked a box in the basement with a value of...
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Accounting
A firm counting its inventory overlooked a box in the basement with a value of $1000 in year 1. The following year it forgot to count the box again. How will this affect the financial statements? Give your answer in the format U amount or O amount. For example, if your answer is that something is understated by $3000, you would enter U 3000.
How did this affect retained earnings in year 1?
How did this affect year 2s net income?
How did this affect year 2s retained earnings?
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