Effect of the error # 2 for the year 2020 Answer the ff: O-OverstatedU-UnderstatedX-No effectPurchases Cost of Sales Net income Inventory Accounts Payable RE before closing RE after closing You are examining the financial statements of DON JOHN CORPORATION which ends on December31. DON JOHN CORP. uses the physical inventory system of accounting for inventory. During yourexamination, you discovered the errors below.1. Goods received in January 2020 were recorded as purchase on account in December 2019. Thegoods were included in the 2019 ending inventory.2. The inventory at December 31, 2019 is understated as a result of errors in physical count.3. Goods received in December 2019 were recorded as purchases when paid in 2020. The goodswere excluded from the 2019 ending inventory.4. The inventory at December 31, 2019 is overstated as a result of the inclusion of goods acquiredon consignment.5. Goods received in January 2020 were recorded as purchase on account in December 2019. Thegoods were excluded from the 2019 ending inventory.6. Goods received in December 2019 were recorded as purchases when paid in 2020. The goodswere included in the 2019 ending inventory.Enter the effect of the errors in the solution guide below. Use the following symbols:O-Overstated,U-Understated X-No effect

Name: Effect of the error # 2 for the year 2020 Answer the ff: O-OverstatedU
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Effect of the error # 2 for the year 2020 Answer the ff: O-OverstatedU-UnderstatedX-No effectPurchases Cost of Sales Net income Inventory Accounts Payable RE before closing RE after closing You are examining the financial statements of DO