Calculate the theater's earned revenue after the About 95 % of the season ticket holders attended the first event. were attended by about 80% of the season ticket holders. To should the attendance data impact revenue recognition? Explain effect of inventory error If the ending inventory of a $50,000, by how much and in what direction (overstated or ) form's operating income be misstated? Effects o f inventory error Assume that the ending inventory firm is overstated by $40,000. Required: By how much and in what direction (overstated or understated ) cost of goods sold be misstated? If this error is not corrected, what effect will it have on the operating income? Calculate the theater's earned revenue after the About 95 % of the season ticket holders attended the first event. were attended by about 80% of the season ticket holders. To should the attendance data impact revenue recognition? Explain effect of inventory error If the ending inventory of a $50,000, by how much and in what direction (overstated or ) form's operating income be misstated? Effects o f inventory error Assume that the ending inventory firm is overstated by $40,000. Required: By how much and in what direction (overstated or understated ) cost of goods sold be misstated? If this error is not corrected, what effect will it have on the operating income