The accountant for Ella Company made the following errors related to the inventory in 2014: 1.The beginning inventory for 2014 was understated by $1,350 due to an error in the physical count.
2.A $1,500 purchase of merchandise on credit was not recorded or included in ending inventory.
Assuming a periodic inventory system, Ella Company's 2014 net income will be
A) understated by $150
B) overstated by $1,350
C) overstated by $1,500
D) overstated by $2,850
Correct Answer:
Verified
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