On Saturday,June 30,BD Pool Supplies sold merchandise to E.Luang on account.The sales price was $6,400,and the cost of goods sold was $5,300.The sales revenue was recorded immediately,but the entry recording the cost of goods sold was dated Monday,July 2.As a result,net income for June was:

Question

Quizplus · Accepted Answer

The net income for June was overstated by $5,300 because the cost of goods sold was not recorded in June, which means expenses were understated, leading to an overstatement of net income.

On Saturday,June 30,BD Pool Supplies Sold Merchandise to E