1.
Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.
Ending inventory: The inventory that remains at the end of an accounting period and could not be sold in the current period is known as ending inventory.
To explain: the reason for the negative effect on the bonuses and the effect on pretax earnings.
2.
To explain: the reporting of the error of the current year period discovered by the auditors during the following year’s audit.
3.
To Discuss: the ethical dilemma that Mr. J faces.
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LooseLeaf Intermediate Accounting w/ Annual Report; Connect Access Card
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