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On December 31st, 2019,Molly Company was paid $5,000 for work to be performed in 2020.Molly Co. recorded the $5,000 to revenue.Ignoring income taxes, if this
On December 31st, 2019,Molly Company was paid $5,000 for work to be performed in 2020.Molly Co. recorded the $5,000 to revenue.Ignoring income taxes, if this error is not detected
a.Retained Earnings at December 31, 2019 will be overstated by $5,000.
b.Retained Earnings at December 31, 2019 will be understated by $5,000.
c.Retained Earnings at December 31, 2019 will not be impacted.
d.None of the above.
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