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A company that uses the period inventory system records a purchase of inventory twice but...

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Accounting

A company that uses the period inventory system records a purchase of inventory twice but correctly state the ending inventory. What is an effect on these financial statements at the end of the period?

1. Retained earnings will be understated

2. Cost of goods sold will be understated

3. Working capital will be overstated

4. Next income will be correctly stated

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