If your gross profit margin is 60%, net sales are $90,000, and your cost of goods available for sale are $ 50,000, what is the value of the ending inventory? A) $10,000 b) $14,000 c) $18,000 d) $20,000 e) $35,000 The understatement of the ending inventory balance causes: a) Cost of goods sold to be overstated and net income to be correct b) Cost of goods sold to be overstated and net income to be overstated c) Cost of goods sold to be understated and net income to be understated d) Cost of goods sold to be understated and net income to be overstated e) Cost of goods sold to be overstated and net income to be understated The understatement of the beginning inventory balance causes a) Cost of goods sold to be understated and net income to be understated b) Cost of goods sold to be overstated and net income to be overstated c) Cost of goods sold to be understated and net income to be overstated d) Cost of goods sold to be overstated and net income to be understated e Cost of goods sold to be overstated and net income to be correct. A book of original entry that is designed to record any type of business transaction is referred to as a a) General Ledger b) Columnar ledger c) General Journal d) Special journal e) Subsidiary ledger