Indicate in each of the spaces provided the effect of the described errors on the various elements of a companys financial statements. All sales and purchases are on credit. Assume a periodic inventory system. (9 points: 0.5*18)

Use the following codes:

O = amount is overstated;

U = amount is understated;

NE = no effect.

Accounts receivable	Inventory	Accounts payable	Sales	Cost of goods sold	Net income
Goods sold in transit shipped "f.o.b. destination" were recorded as a sale and were included in ending inventory.
Goods purchased in transit shipped "f.o.b. shipping point" by a supplier were recorded as a purchase but were excluded from ending inventory.
Goods held on consignment from a consignor were recorded as a purchase and included in ending inventory count.