My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVENTORY now. Problem 10 asks me to do two following works:Indicate the effects of the following errors on cost of goods sold and net income.1. Beginning inventory is understated by $10,000.2. Ending inventory is overstated by $25,000.3. Beginning inventory is overstated by $30,000 and ending inventory is understated by $10,000.4. Ending inventory is understated by $5,000 and beginning inventory is understated by $5,000

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Asked Oct 23, 2019
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My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVENTORY now. 

Problem 10 asks me to do two following works:

Indicate the effects of the following errors on cost of goods sold and net income.

1. Beginning inventory is understated by $10,000.

2. Ending inventory is overstated by $25,000.

3. Beginning inventory is overstated by $30,000 and ending inventory is understated by $10,000.

4. Ending inventory is understated by $5,000 and beginning inventory is understated by $5,000

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Effect of errors on cost of goods ...

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A Cost of goods sold Error Net income 1 1. Beginning inventory is understated 2 by $10,000 2. Ending inventory is overstated by 3 $25,000 3. Beginning inventory is overstated by $30,000 and Ending inventory is 4 understated by $10,000 4. Ending inventory is understated by $5,000 and Beginning inventory is 5 understated by $5,000 Understated Overstated Understated Overstated Understated Overstated No effect No effect

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