s) What effect will overstating 2020's ending inventory by $1,009,000 have on 2021's ending retained earnings? ( O No effect; the RE balance will be correct. ORE will be overstated by $1,009,000 ORE will be understated by $1,009,000 We need more information to answer this question.

s) What effect will overstating 2020's ending inventory by $1,009,000 have on 2021's ending retained earnings? ( O No effect; the RE balance will be correct. ORE will be overstated by $1,009,000 ORE will be understated by $1,009,000 We need more information to answer this question.

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 12RE: Borys Companys periodic inventory at December 31, 2019, is understated by 10,000, but purchases are...

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s) What effect will overstating 2020's ending inventory by $1,009,000 have on 2021's ending
retained earnings? (
O No effect; the RE balance will be correct.
O RE will be overstated by $1,009,000
RE will be understated by $1,009,000
We need more information to answer this question.

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