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Entry to correct errors in inventory
Cappella co. made the following errors in counting its year-end physical inventories:
2000 600,000 overstatement 2001 108,000 understatement 2002 90,000 overstatement The entry to correct the accounts at the end of 2002 is: a) retained earnings 48,000 Cost of goods sold 42,000 Inventory 90,000 b)retained earnings 18,000 Cost of goods sold 72,000 Inventory 90,000 c)inventory 90,000 Cost of goods sold 18,000 Retained earning 72,000 d) cost of goods sold 198,000 Retained earning 108,000 Inventory 90,000 |
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