Assume TFG Company uses a periodic inventory system and overstates its ending inventory by $12,000.In other words,the company counts and states that its ending inventory is $50,000,when in fact the correct ending inventory balance should have been $38,000.Describe how this mistake of overstating inventory affects the income statement.

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The Answer of Assume TFG Company uses a periodic inventory system and overstates its ending inventory by $12,000.In other words,the company counts and states that its ending inventory is $50,000,when in fact the correct ending inventory balance should have been $38,000.Describe how this mistake of overstating inventory affects the income statement.

Assume TFG Company Uses a Periodic Inventory System and Overstates