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Click here to exit full screen mode. Part 18 of 22 - Question 18 Question Pro- Question 18 of 22 3 Points New Gen Products (NGP) has a year-end of 30 September. The business uses the periodic system to record inventory. On 8 October 2020, after the financial statements had been prepared, NGP realised that certain inventory had not been included in the physical inventory count on 30 September 2020. This inventory was purchased on 19 September 2020 at a cost of R32 000 and had a marked selling price of R46 000. This inventory was still on hand at year-end. Which of the following statement is true for the year ended 30 September 2020? A. The opening inventory balance is overstated by R46 000 The cost of sales experience is overstated by R46 000 Retained earnings is understated by R46 000 OB. The closing inventory balance is understated by R46 000 The cost of sales expense is understated by R46 000 Retained earnings is understated by R46 000 C. The closing inventory balance is understated by R 32 000 The cost of sales expense is overstated by R32 000 Retained earnings is understated by R32 000 OD. The closing inventory balance is understated by R32 000 The cost of sales expense is understated by R32 000 Retained earnings is overstated by R32 000 E. The opening inventory balance is overstated by R32 000 The cost of sales expense is overstated by R32 000 Retained earnings was overstated by R32 000 Reset Selection

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