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Enter the effect of the errors in the solution guide below. Use the following symbols: O-Overstated, U-Understated X-No effect (ABCD columns correspond to nos. 1-4) Problem 9 Inventory Errors (Periodic Inventory System) 1. 2003 sales were recorded in 2004; goods were included in the 2003 ending inventory. 2. 2004 sales were recorded in 2003; goods were included in the 2003 ending inventory. 3. 2003 sales were recorded in 2004; goods were excluded from the 2003 ending inventory. 4. 2004 sales were recorded in 2003; goods were excluded from the 2003 ending inventory. A B D Income Statement- 2003 Sales Ending inventory Cost of Sales Net income Balance Sheet- December 31, 2003 Inventory Accounts PAYABLE RE before closing RE after closing Income Statement- 2004 Sales Beginning inventory Ending inventory Cost of Sales Net income Balance Sheet- December 31, 2004 Inventory Accounts Payable RE before closing RE after closing Enter the effect of the errors in the solution guide below. Use the following symbols: O-Overstated, U-Understated X-No effect (ABCD columns correspond to nos. 1-4) Problem 9 Inventory Errors (Periodic Inventory System) 1. 2003 sales were recorded in 2004; goods were included in the 2003 ending inventory. 2. 2004 sales were recorded in 2003; goods were included in the 2003 ending inventory. 3. 2003 sales were recorded in 2004; goods were excluded from the 2003 ending inventory. 4. 2004 sales were recorded in 2003; goods were excluded from the 2003 ending inventory. A B D Income Statement- 2003 Sales Ending inventory Cost of Sales Net income Balance Sheet- December 31, 2003 Inventory Accounts PAYABLE RE before closing RE after closing Income Statement- 2004 Sales Beginning inventory Ending inventory Cost of Sales Net income Balance Sheet- December 31, 2004 Inventory Accounts Payable RE before closing RE after closing

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