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(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: 0 - amount is overstated; U = amount is understated; NE = no effect. Assume a periodic inventory system.

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 fromending inventory but sale was not recorded

Accounts Receivable Inventory Accounts Payable Sales Cost of Goods Sold NE NE O NE NE o O NE NE Is in transit shipped "F.O.B. destination" by Hier were recorded as a purchase but were nded from ending inventory Is held on consignment were included in tory count and recorded as a purchase Is in transit shipped "F.O.B. shipping point" were ecorded as a sale and were included in ending ntory Es were shipped and appropriately excluded from ng inventory but sale was not recorded U 0 NE U U U NE NE U NE