The accountant for Suzanne Company made the following errors related to inventory in 2015:
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, how would Sue's cost of goods sold, gross profit, and net income be affected in 2015 by these errors?

Question

The accountant for Suzanne Company made the following errors related to inventory in 2015: 
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, how would Sue's cost of goods sold, gross profit, and net income be affected in 2015 by these errors?

Quizplus · Accepted Answer

The Answer of The accountant for Suzanne Company made the following errors related to inventory in 2015: 
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, how would Sue's cost of goods sold, gross profit, and net income be affected in 2015 by these errors?

The Accountant for Suzanne Company Made the Following Errors Related