Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Majik Carpet was having problem selling inventory item #371 so the owner decided to place that item with a consignee to see if they could sell it. The consignee still had the carpet at June 30, 2020 and it was mistakenly not included in the ending inventory count. Indicate the amount of any over or understatement of net income for the month of June as a result of this error

Question

Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
  Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Majik Carpet was having problem selling inventory item #371 so the owner decided to place that item with a consignee to see if they could sell it. The consignee still had the carpet at June 30, 2020 and it was mistakenly not included in the ending inventory count. Indicate the amount of any over or understatement of net income for the month of June as a result of this error

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The Answer of Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
  Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Majik Carpet was having problem selling inventory item #371 so the owner decided to place that item with a consignee to see if they could sell it. The consignee still had the carpet at June 30, 2020 and it was mistakenly not included in the ending inventory count. Indicate the amount of any over or understatement of net income for the month of June as a result of this error

Majik Carpet Company Sells Its Carpet Inventory Using a Perpetual