Indicate in each of the spaces provided the effect of the described errors on the various elements of a company?s financial statements. Use the following codes: O = amount is overstated; U = amount is understated; NE = no effect. Assumes a periodic inventory system.

(All sales and purchases are on credit) Indicate in each of the spaces provided the effect of the described errors on the various elements of a company's financial statements. Use the following codes: O = amount is overstated; U = amount is understated; NE = no effect. Assumes a periodic inventory system. Accounts Accounts Cost of Receivable Inventory Payable Sales Goods Sold Example: Excluded goods in rented warehouse from inventory count. 1. Goods in transit shipped\" f.o.b. destination\" by supplier were recorded as a purchase but were excluded from ending inventory. 2. Goods held on consignment were included in inventory count and recorded as a purchase. 3. Goods in transit shipped \"f.o.b. shipping point\" were not recorded as a sale and were included in ending inventory. 4. Goods were shipped and appropriately excluded from ending inventory but sale was not recorded. NE U NE NE O