Company uses the periodic system and overerstated Purchases by $700 in Year 5 when it recorded a purchase in the year before it should have been recorded. Company overstated Ending Inventory [EI] at the end of Year 5 by $800. Further, the firms employees undercounted EI at the end of Year 4 by $300. Ignore taxes.

By what amount, if any, did Company over/understate Gross Margin for Year 4? Specify understated or overstated.

By what amount, if any, did Company over/understate Gross Margin for Year 5? Specify understated or overstated.

By what amount, if any, did Company over/understate Gross Margin for Year 6? Specify understated or overstated.

By what amount, if any, did Company over/understate Owners Equity at the end of Year 6? Specify understated or overstated.

Inventory Errors:

BUAD 280 Company uses the periodic system and overstated Purchases by $400 in Year 5 when it recorded a purchase in the year before it should have been recorded. BUAD 280 understated EI at the end of Year 5 by $200. A $700 sale was recorded in Year 4 that was a true sale in Yr. 5. Ignore taxes.

By what amount, if any, did BUAD 280 Company over/understate Gross Margin in Year 4? Specify understated or overstated.

By what amount, if any, did BUAD 280 Company over/understate Gross Margin in Year 5? Specify understated or overstated.

By what amount, if any, did BUAD 280 Company over/understate Gross Margin in Year 6? Specify understated or overstated.

By what amount, if any, did BUAD 280 Company over/understate Owners Equity at the end of Year 6? Specify understated or overstated.