Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31, 20x1, katherine company purchases

On December 31, 20X1, Katherine Company purchases merchandise with shipping terms FOB destination. The company's...

70.2K

Verified Solution

Question

Accounting

imageimage

On December 31, 20X1, Katherine Company purchases merchandise with shipping terms FOB destination. The company's accountant records the purchase on the day the order is placed. The merchandise is not included in the ending inventory. No additional journal entry is made when the merchandise arrives on January 5, 20x2. As a result of this error, Katherine Company's 20X1 Multiple Choice income will be overstated. income will be understated. ending inventory is understated. ending inventory is overstated. On December 31, 20X1, Katherine Company purchases merchandise with shipping terms FOB destination. The company's accountant records the purchase on the day the order is placed. The merchandise is not included in the ending inventory. No additional journal entry is made when the merchandise arrives on January 5, 20X2. Assume that the error is not discovered. As a result of this error, Katherine Company's 20X2: Multiple Choice income will be overstated. income will be understated. ending inventory is understated. ending inventory is overstated

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students