Bill Inc.'s correct ending balance for the inventory account at the end of 2018 should be $5,000,but the company incorrectly stated it as $3,000.In 2019,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 2018.
B) Retained earnings are understated by $2,000 in 2019.
C) Gross profit is overstated by $2,000 in 2019.
Correct Answer:
Verified
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