Question 31 During 2014, Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: Not yet answered Points out of 3.00 2012 2013 $60,000 overstated $75,000 overstated P Flag question Paul uses the periodic inventory system. Prior to any adjustments for these errors and ignoring income taxes, Paul's 2013 Net Income would be: Select one: a. Correct b. $15,000 overstated c. $75,000 overstated d. $135,000 overstated e. $15,000 understated A store uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. Past experience indicates that the markup on cost is 25%. The following data relate to the month of March: Question 32 Not yet answered Points out of 3,00 Inventory cost, March 1 Purchases during the month at cost Sales Sales retums $25,000 67,000 84,000 3,000 Flag question Using the data above, what is the estimated ending inventory at March 31? Select one: a. $20,250 b. $24,800 c. $27,200 d. $71,750 e. $31,250