ACC 205 Week 3 Assignment - Ashford University ACC Guidance...

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AshfordGuLISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORTCh 5 Ex 1Inventory understated4,000Questions20X3 Sales 100,000Cost of goods sold 52,000Gross profit 48,000Expenses 26,000Net income 22,00020X4Sales 109,000Cost of goods sold 84,000Gross profit 25,000Expenses 22,000Net income 3,000Account tobe changedOriginalAmountYOUR ANSWERS BASED UPON COURSE START DATEWhat is the effect of the error on ending owner's equity for 20X3 and 20X4?An incorrect inventory balance causes an error in the calculation of CGS, therefore there will be an error in GP and NI.
Ch 5 Pb 2Sold710Ending Inventory160QuestionsFIFOSales177,500Purchases125,280Ending inventory26,084Cost of Goods Sold99,196Gross Profit78,304LIFOSales177,500Purchases125,280Ending inventory21,240Cost of Goods Sold104,040Gross Profit73,460Average CostSales177,500Purchases125,280Ending inventory23,904Cost of Goods Sold101,376Gross Profit76,124

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