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    nativegirl Posts: 0, Reputation: 1
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    Dec 3, 2006, 09:34 PM
    Effects of inventory errors
    Hello,

    I was wondering if anyone had a brief breakdown of the effects of inventory errors.

    For example, what happens when beginning inventory is overstated. What is the effect on net income. What happens when a purchase is not recorded? What happens when ending inventory is understated?

    Thanks so much,

    Tammy K.

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