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At the year end the accountant has discovered the followings error: (a) The closing inventory has been understated by $50,000 (b) Discount received $8000 has
At the year end the accountant has discovered the followings error:
(a) The closing inventory has been understated by $50,000
(b) Discount received $8000 has been included as other income instead of cost of sales
What is the effect of these errors on gross profit and net profit
Overstatement or understatement by amount?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740460, 978-1119740469
