Karen Statement (Miss Statement) does the period-end inventory counts for Statement Enterprises, Inc. while texting,...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Karen Statement (Miss Statement) does the period-end inventory counts for Statement Enterprises, Inc. while texting, and thus, miscounted on-hand inventory by the following amounts: 12/31/2019 12/31/2020 $8,700 overstated $2,000 understated Additionally, although the purchase or sale for the following transactions was otherwise correctly recorded, Karen did NOT include the following items in the ending inventory count - which may or may not be an error: a) Statement shipped $200 of inventory to customer on 12/28/2020 with terms FOB Shipping Point. Goods received 01/02/2021. b) Statement shipped $700 of inventory to customer on 12/28/2020 with terms FOB Destination Point. Goods received 01/02/2021. c) Statement purchased $150 of inventory from supplier on 12/28/2020 with terms FOB Shipping Point. Goods received 01/02/2021. d) Statement purchased $95 of inventory from supplier on 12/28/2020 with terms FOB Destination Point. Goods received 01/02/2021. e) Statement holds $2,000 of inventory on consignment for a dear friend. By what amount will net income for 2020 be overstated (or understated)? If overstated enter as a positive; if understated enter as a negative. Numeric Response
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
