Bill Inc.'s correct ending balance for the inventory account at the end of 2015 should be $5,000,but the company incorrectly stated it as $3,000.In 2016,Bill correctly recorded its ending balance of the inventory account.Which one of the following is true?
A) Gross profit is overstated by $2,000 in 2015.
B) Retained earnings are understated by $2,000 in 2016.
C) Gross profit is overstated by $2,000 in 2016.
D) Cost of goods sold is understated by $2,000 in 2015.
Correct Answer:
Verified
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