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A company understated its ending inventory in Year 1 by $25,000 and overstated its ending inventory in Year 2 by $30,000. Neither error was discovered
A company understated its ending inventory in Year 1 by $25,000 and overstated its ending inventory in Year 2 by $30,000. Neither error was discovered until Year 3. As a result, of these two errors, gross profit for Year 2 was:
A: Overstated by $5,000
B: Understated by $25,000
C: Overstated by $30,000
D: Overstated by $55,000
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