For each of the following independent scenarios,indicate the effect of the error (if any) on:i. 2019 net income;ii. 2020 net income; andiii. 2020 closing retained earnings.company uses the periodic system of inventory andits fiscal year-end is December 31. Ignore income taxeffects. Consider each of the following independentThescenarios:a. Your analysis of inventory indicates that inventory atthe end of 2019 was overstated by $27,000 due to aninventory count error. Inventory at the end of 20 13 wascorrectly stated.b. Invoices in the amount of $107,000 for inventoryreceived in December 2019 were not entered on thebooks in 2019. They were recorded as purchases inJanuary 2020 when they were paid. The goods werecounted in the 2019 inventory count and included inending inventory on the 2019 financial statements.c. Goods received on consignment amounting to $89,000were included in the physical count of goods at the endof 2020 and included in ending inventory on the 2020financial statements.d. For each of the three scenarios, provide the journalentry that should be recorded in 2020 to correct theerror.

Step 1 Journal is the part of book keeping.

Answered: For each of the following independent…

Business

Accounting

For each of the following independent scenarios, indicate the effect of the error (if any) on:

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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