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A company made an error in counting its ending inventory. They understated the ending by $10,000. As a result of this error: Net sales is
A company made an error in counting its ending inventory. They understated the ending by $10,000. As a result of this error: Net sales is overstated by $10,000. Operating expenses are understated by $5,000. Gross of goods sold is overstated by $20,000. Gross profit is overstated by $10,000. None of the above. Assume the company in question #11 above, overstated its ending inventory by $10,000. As a result of this error: Net sales is understated by $10,000. Operating expenses would be overstated by $10,000. Income before taxes would be overstated by $10,000. Operating expenses would be understated by $20,000. None of the above. Marta Company has the following bank items: Balance per company books $50,000 Balance per bank statement 50, 450 Deposit in transit 800 Outstanding checks 1, 200 Interest income 100 Service charge 50 The adjusted book should be $49, 250 $50,000 $50, 050 $50, 850
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