Question
You have been asked to audit thefinancial statementsof Richardson Company for two consecutive years. After examining the accounting records, you determine the following: Ending inventoryin
You have been asked to audit thefinancial statementsof Richardson Company for two consecutive years. After examining the accounting records, you determine the following:
Ending inventoryin Year 1 is overstated by $3,400
Ending inventory in Year 2 is understated by $14,600
Required:
Ignoring income taxes, what effect will the errors have onnet incomefor each of Year 1 and Year 2?
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
