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A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise, however, was correctly included in the year-end physical count. How will these errors affect inventory at year- end and cost of goods sold for the year? * O No effect, Understated O No effect, Overstated O Understated, Understated O Understated, No effect

A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise, however, was correctly included in the year-end physical count. How will these errors affect inventory at year- end and cost of goods sold for the year? * O No effect, Understated O No effect, Overstated O Understated, Understated O Understated, No effect

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 17E: Errors A company that uses the periodic inventory system makes the following errors: 1. It omits a...
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A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise, however, was correctly included in the year-end physical count. How will these errors affect inventory at year- end and cost of goods sold for the year? * O No effect, Understated O No effect, Overstated Understated, Understated O Understated, No effect
Transcribed Image Text:A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise, however, was correctly included in the year-end physical count. How will these errors affect inventory at year- end and cost of goods sold for the year? * O No effect, Understated O No effect, Overstated Understated, Understated O Understated, No effect
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