The accountant for Lee Company made the following errors related to merchandise inventory in 2014:
1.The beginning inventory for 2014 was overstated by $750 due to an error in the physical count.
2.A $1,300 purchase of merchandise on credit was not recorded or included in the ending inventory.
Assuming a periodic inventory system, Lee Company's 2014 cost of goods sold will be
A) understated by $550
B) understated by $1,850
C) overstated by $1,850
D) overstated by $750
Correct Answer:
Verified
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