For each of the following independent scenarios, indicate the effect of the error ( if any ) on i 2 0 2 3 net income ii 2 0 2 4 net income iii 2 0 2 4 closing retained earnings The company uses the periodic system of inventory and its fiscal year end is December 3 1 Ignore income tax effects a Your analysis of inventory indicates that the balance at the end of 2 0 2 3 was understated by $ 1 9 , 0 0 0 due to an inventory count error Inventory at the end of 2 0 2 4 was correctly stated b Invoices in the amount of $ 2 4 , 0 0 0 for inventory received in December 2 0 2 3 were not entered on the books in 2 0 2 3 They were recorded as purchases in February 2 0 2 4 when they were paid The goods were included in the 2 0 2 3 inventory count and included in ending inventory on the 2 0 2 3 balance sheet c Goods sold but held in the warehouse by customer request, costing $ 4 5 , 0 0 0 , were included in the physical count of goods at the end of 2 0 2 4 and included in ending inventory on the 2 0 2 4 financial statements

Question

For each of the following independent scenarios, indicate the effect of the error ( if any ) on  i   2 0 2 3 net income ii   2 0 2 4 net income iii  2 0 2 4 closing retained earnings The company uses the periodic system of inventory and its fiscal year   end is December 3 1   Ignore income tax effects  a   Your analysis of inventory indicates that the balance at the end of 2 0 2 3 was understated by $ 1 9 , 0 0 0 due to an inventory count error  Inventory at the end of 2 0 2 4 was correctly stated  b   Invoices in the amount of $ 2 4 , 0 0 0 for inventory received in December 2 0 2 3 were not entered on the books in 2 0 2 3   They were recorded as purchases in February 2 0 2 4 when they were paid  The goods were included in the 2 0 2 3 inventory count and included in ending inventory on the 2 0 2 3 balance sheet  c   Goods sold but held in the warehouse by customer request, costing $ 4 5 , 0 0 0 , were included in the physical count of goods at the end of 2 0 2 4 and included in ending inventory on the 2 0 2 4 financial statements

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For each of the following independent scenarios, indicate the effect of the error ( if any ) on: i . 2 0 2 3 net

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