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Vibrant Company had $850,000 of sales in each of three consecutive years 20142016, and it purchased merchandise costing $500,000 in each of those years. It
Vibrant Company had $850,000 of sales in each of three consecutive years 20142016, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2014 that caused its year-end 2014 inventory to appear on its statements as $230,000 rather than the correct $250,000.
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