ssume that ending inventory in fiscal 2019 is overstated by

$1,000.

What impact will this have on fiscal 2020 financial reporting?

A.

Inventory is understated on the balance sheet.

B.Gross margin is understated by

$1,000.

C.Cost of sales is understated by

$1,000.

D.Retained earnings is overstated by

$1,000.