What is the effect of the foregoing errors (overstatement) on total assets at december 31,2025? Use the following information for the next three (3) questions:Silhouette Corporation reported profit for the year 2024 and 2025 at P550,000 andP700,000, respectively. Your audit of the company's account disclosed the need foradjustments as follows:2024 2025Overstatement of ending inventory due to error in pricing29,000 33,000Omission of depreciation on newly-acquired equipment|15,000 15,000Understatement of commission receivable22,000 18,000A purchase of merchandise was not recorded until the following60,000year, and also was not included in the ending inventory

(1) Overstatement of Ending Inventory As we can see that we have overstated the closing inventory in…

Answered: (overstat

Business

Accounting

(overstat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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11&37
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