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On 1/7/2023, Mega Mart is audited and finds that their 12/31/2022 inventory account had a recorded ending balance of $8,000, but should have had an
On 1/7/2023, Mega Mart is audited and finds that their 12/31/2022 inventory account had a recorded ending balance of $8,000, but should have had an ending balance $6,000 on their balance sheet. What is the effect that this has on the Net Income shown on Mega Mart's Income Statement?
Net Income was overstated
Other effect on Net Income
Net Income was understated
There was no effect on Net Income
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