Question 16 (1 point) Wonder Company hired some students to help count inventory during their semester break. Unfortunately, the students did not count some inventory items and the ending inventory was understated by $ 20,000. What would be the effect of this error in ending inventory? A) Income for the current year would be overstated. B) Ending retained earnings would be overstated. C) Cost of goods sold for the current year would be understated. D) Income for the current year would be understated. Question 17 (1 point) People Cars Inc. has the following inventory of vehicles: Vehicle A Vehicle B Vehicle C Vehicle D Cost $ 29,000 $ 60,000 $ 18,000 $ 22,000 |$129,000 INRV $ 29,500 $ 50,000 $ 20,000 $ 21,500 $121,000 In applying the lower of cost and net realizable value rule on an individual item basis, by how much would Rock Cars need to adjust its inventory? A) Write down inventory by $8,000. B) Write down inventory by $2,500. O C) Write up inventory by $8,000. O D) Write down inventory by $10,500. Beginning Question 18 (1 point) Sports Racing Corp. uses a perpetual inventory system. 120 units Jul 11 @ $19 inventory each 170 units 7 Purchases @ $20 leach 10 units 22 Purchases @ $22 leach are on A physical count of mer inventory on July hand. All sales occurred after July 22nd. Under the average cost method, cost of goods sold for July was: A) $520 B) $500 C) $1,600 D) $1,500