During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2023 net income after year-end adjusting journal entries? Assume the 2023 inventory count is correct. Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.
During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2023 net income after year-end adjusting journal entries? Assume the 2023 inventory count is correct. Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 71BPSB
Related questions
Question
During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2023 net income after year-end adjusting journal entries ? Assume the 2023 inventory count is correct.
Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning