The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is...
The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is the effect on 20x8’s net income, assuming that no other inventory errors have occurred during 20x8?
Group of answer choices
a. $150,000 overstated
b. $75,000 understated
c. no effect
d. $75,000 overstated
Homework Answers
Income will be overstated by $ 75,000 for the income statement ending at December 3st 20X8.
Closing stock will be represented on the credit side of the income statement. It has a direct impact on the income of the company, an increase in the value of the stock will increase the profits and a decrease in the value of the stock will decrease the profits.
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The ending inventory of Sandie’s Candies is overstated by
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