The bookkeeper for Duncan Company made an error in recording the year-end inventory balance on December 31, 2018. As a result, ending inventory was understated by $37,000.
a)What effect will this error have on cost of goods sold, gross margin, net income, and owner's equity in 2018?
b)As of December 31, 2019, what will be the cumulative effect of this error on owner's equity?

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The Answer of The bookkeeper for Duncan Company made an error in recording the year-end inventory balance on December 31, 2018. As a result, ending inventory was understated by $37,000.
a)What effect will this error have on cost of goods sold, gross margin, net income, and owner's equity in 2018?
b)As of December 31, 2019, what will be the cumulative effect of this error on owner's equity?

The Bookkeeper for Duncan Company Made an Error in Recording