In: Accounting
During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:
2022 |
$60,000 understated |
2023 |
$75,000 overstated |
Prior to any adjustments for these errors, 2023 Net Income would be:
Select one:
a. Correct
b. $75,000 overstated
c. $15,000 overstated
d. $135,000 overstated
e. $75,000 understated
2023 Net Income would be: | |
Opening inventory understated that means net income overstated | $ 60,000 |
Closing inventory overstated means net income overstated | $ 75,000 |
Total Net Income overstated | $ 1,35,000 |
Correct Option :d. $135,000 overstated |