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James Supply Company Reports Net Income of $120000 in 2016

Question 191

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James Supply Company reports net income of $120000 in 2016. The ending inventory did not include goods valued at $9000 that James had consigned to Eli's Gift Shop.
(1) What is the correct net income for 2016?
(2) What impact will this error have on the balance sheet at 12/31/16?

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(1) If ending inventory is understated b...

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