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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 18
Measuring the effect of an inventory error
Grandma Kate Bakery reported sales revenue of $52,000 and cost of goods sold of $22,000.
Requirement
1. Compute Grandma Kate's correct gross profit if the company made either of the following independent accounting errors. Show your work.
a. Ending inventory is overstated by $6,000.
b. Ending inventory is understated by $6,000.
Grandma Kate Bakery reported sales revenue of $52,000 and cost of goods sold of $22,000.
Requirement
1. Compute Grandma Kate's correct gross profit if the company made either of the following independent accounting errors. Show your work.
a. Ending inventory is overstated by $6,000.
b. Ending inventory is understated by $6,000.
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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