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Current Attempt in Progress The following is a list of events that occurred during the year-end preparation of the financial statements of Labelle Supplies Labelle has a December 31 fiscal year end and uses a perpetual Irwantory system 1 When taking the inventory count some fums were omitted from the count because they were outside under a metre or Show 2 Goods Labello wors holding on consignment for other merchants were included in the inventory count Goods returned to Labelle from a customer and received by Labele one day before the inventory count were set aside and not counted Before December 31 Lobelle sent a fur credit to the customer although it had not inspected the merchandise to decide what to do with it later, inspection determined the inventory to be in excellent condition Goods held on consignment for Labelle were not included in the inventory count 5 Defective inventory Labelle was about to send back to their supplier was not counted Early in January, Labele returned the goods to the supplier for a full credit + (a) Indicate the impact of each error on the balance sheet and income statement by stating whether assets, habilities, owner's equity, cost of goods sold gloss profit and profit are understated overstated, or if there is no effect Balance Sheet Income Statement Assets Labilities Owner's Equity Cost of Goods Sald Gross Profit Profit v

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