Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Years 1 and 2,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 2.
$\begin{array}{ll}
\text { Ending merchandise inventory } & \text { Year 2 \_\_\_ } \
\text { Beginning merchand ise inventory } & \text { Year 2\_\_\_ } \
\text { Cost of goods sold } & \text { Year 2 \_\_\_ } \
\text { Gross profit } & \text { Year 2 \_\_\_ } \
\text { Net income } & \text { Year 2 \_\_\_ } \
\text { Ending owner's capital } & \text { Year 2 \_\_\_ }
\end{array}$

Question

Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Years 1 and 2,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 2.
 $\begin{array}{ll}
\text { Ending merchandise inventory } & \text { Year 2 \_\_\_ } \
\text { Beginning merchand ise inventory } & \text { Year 2\_\_\_ } \
\text { Cost of goods sold } & \text { Year 2 \_\_\_ } \
\text { Gross profit } & \text { Year 2 \_\_\_ } \
\text { Net income } & \text { Year 2 \_\_\_ } \
\text { Ending owner's capital } & \text { Year 2 \_\_\_ }
\end{array}$

Quizplus · Accepted Answer

The Answer of Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Years 1 and 2,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 2.
 $\begin{array}{ll}
\text { Ending merchandise inventory } & \text { Year 2 \_\_\_ } \
\text { Beginning merchand ise inventory } & \text { Year 2\_\_\_ } \
\text { Cost of goods sold } & \text { Year 2 \_\_\_ } \
\text { Gross profit } & \text { Year 2 \_\_\_ } \
\text { Net income } & \text { Year 2 \_\_\_ } \
\text { Ending owner's capital } & \text { Year 2 \_\_\_ }
\end{array}$

Assume That in Year 1,the Ending Merchandise Inventory Is Overstated