Randwick Ltd has a year-end of 30 June 2009.During the year the following errors were discovereD. -Merchandise inventory at the factory had been understated by $44,000.
-Goods on consignment from a supplier for $13,000 were included in inventory at the shops.
-Physical inventory for one warehouse had a shortage of $58,000
What is the net effect of above errors in the income statement and balance sheet (inventory)accounts of Randwick Ltd?

Question

Quizplus · Accepted Answer

The Answer of Randwick Ltd has a year-end of 30 June 2009.During the year the following errors were discovereD. -Merchandise inventory at the factory had been understated by $44,000.
-Goods on consignment from a supplier for $13,000 were included in inventory at the shops.
-Physical inventory for one warehouse had a shortage of $58,000
What is the net effect of above errors in the income statement and balance sheet (inventory)accounts of Randwick Ltd?

Randwick Ltd Has a Year-End of 30 June 2009