During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $217,361 instead of the correct amount of $182,687. The effect on the balance sheet and income statement would be Oa. assets overstated by $34,674; retained carnings understated by $34,674; and net income statement understated by $34,674 Ob. assets overstated by $34,674; retained carnings understated by $34,674; and no effect on the income statement Oc. assets, retained earnings, and net income all overstated by $34,674 Od. assets and retained earnings overstated by $34,674; and net income understated by $34,674

During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $217,361 instead of the correct amount of $182,687. The effect on the balance sheet and income statement would be Oa. assets overstated by $34,674; retained carnings understated by $34,674; and net income statement understated by $34,674 Ob. assets overstated by $34,674; retained carnings understated by $34,674; and no effect on the income statement Oc. assets, retained earnings, and net income all overstated by $34,674 Od. assets and retained earnings overstated by $34,674; and net income understated by $34,674

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Description: During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $217,361 instead of the correct amount of $182,687. The effect on the balance sheet andincome statement would bea. assets overst

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PA: Assuming a companys year-end inventory were overstated by $5,000, indicate the effect...

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