Identify the $ value impact from the errors below on ending inventory, revenue, net income and ending retained earnings in the current year. Identify if the errors are an overstatement or an understatement. Each scenario is an independent case, the year end is December 31.

$1,500 of goods held on consignment were included in the inventory count and recorded in the purchases account.

Merchandise received during the year costing $4,600 was missed in the inventory count and therefore not included in ending inventory.

Included in the physical count were inventory items billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $37,000 and were billed at $57,000. The shipment was on our loading dock waiting to be picked up by the common carrier.

Goods in transit with a cost of $1,000 shipped FOB destination by the supplier were recorded as a purchase but were excluded from ending inventory.

You can use the following template for each scenario:

Current year Beginning Inventory + Purchases = Available goods - Ending Inventory Cost of Goods Sold Sales - Cost of Goods Sold Net Income R/E, beg + Net Income R/E, end