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A company makes silly clerical errors and in the annual financial statements for the year ended December 31, 2010 understates it beginning inventory for the

A company makes silly clerical errors and in the annual financial statements for the year ended December 31, 2010 understates it beginning inventory for the year by $5,000 and in the same accounting period overstates its ending inventory by $9,000. As a result of these two errors, Cost of Goods Sold reported in the 2010 Income Statement will be: understated by 14000 Why?

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