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If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases,
If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory?
No effect on net income.
Understate net income.
Not sufficient information to determine effect on net income.
Overstate net income.
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