8. Assume that in Year 1, the ending merchandise inventory is overstated
by $30,000. If this is the only error in Years 1 and 2, fill in the
items below, indicating which items will be understated, overstated, or
correctly stated for Years 1 and 2.
Item Year 1 Year 2
Ending inventory ___________ _____________
Beginning inventory ___________ _____________
Cost of goods sold ___________ _____________
Click here for the solution: Assume that in Year 1, the ending merchandise inventory is overstated by $30,000
