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Hi-Lo Corporation recorded goods in transit purchased f.o.b. shipping point at year-end as purchases. The good were excluded from ending inventory. What effect does

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Hi-Lo Corporation recorded goods in transit purchased f.o.b. shipping point at year-end as purchases. The good were excluded from ending inventory. What effect does this omission have on Hi-Lo's assets and net income at year end? Multiple Choice Assets are understated and net income is understated. Assets are not affected and net income is overstated. Assets are not affected and net income is understated. Assets are understated and net income is not affected

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