contestada

Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income. Explain the consequences of this error on the current period's income statement.

Respuesta :

Answer:

Cost of goods sold will be too low by $5000.

Explanation:

Since, As per the given situation the current year the ending inventory is overstated by $5,000. By mistaken company reported the net income is $100,000.

Therefore, the ending inventory is high so, the error on the income statement of the current period is the too low of cost of goods sold will be by $5000.

Otras preguntas