Question
A company's correct ending balance for the inventory account at the end of 2021 should be $5,000, but the company incorrectly stated it as
A company's correct ending balance for the inventory account at the end of 2021 should be $5,000, but the company incorrectly stated it as $3,000. In 2022, the company correctly recorded its ending balance of the inventory account. Which one of the following is true? O Cost of goods sold is understated by $2.000 in 2021. O Retained earnings are overstated by $2,000 in 2022. O Gross profit is overstated by $2,000 in 2021. O Gross profit is overstated by $2,000 in 2022. O More than one of the answers above are correct
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
7th Canadian edition
1119368456, 978-1119211587, 1119211581, 978-1119320623, 978-1119368458
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