10. How would the following activities affect a retailer’s balance sheet and income statement for the current year?

a. The retailer overestimates the amount of year-ending inventory that is obsolete, thus reducing inventory.

b. The retailer overestimates the breakage on a current rebate program.

c. The value of your inventory shrinks by a higher than expected amount.

You had planned for $46,500 shrinkage, but your July count was

$68,200 lower.

d. The retailer switches from LIFO to FIFO.