Chapter 4 Page 58.docx

Chapter 4 Page 58.docx - Chapter 4 58 Sales and accounts...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 – 58
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
- Sales and accounts receivable may be overstated by $300,000. A $300,000 error will bring the accounts receivable back near the prior-year gross total. - If $300,000 of sales were recorded too early, the related Cost of Goods Sold should be restored to Inventory. If the proper COGS ratio is approximately 70% as in the prior year instead of 72%, the COGS may be overstated (and the inventory understated) by another $188,400 (2% x $9,420,000). - Expense accruals might have been omitted in the amount of $18,000, which would bring the accrued expenses up to the prior-year amount ($50,000).
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern