Inventory Errors
McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020. Early in 2020, McLelland discovers that the December 31, 2019 ending inventory was overstated by $20,000. For simplicity, ignore taxes.
Required:
1. What is the correct net income for 2019? For 2020?
2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020?
Corporate Financial Accounting
Accounting Information Systems
Financial & Managerial Accounting
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Essentials of Business Communication (MindTap Course List)
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PAYROLL ACCT.,2019 ED.(LL)-TEXT
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Managerial Accounting: The Cornerstone of Business Decision-Making
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Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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Fundamentals of Financial Management (MindTap Course List)
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