#23 answer 22 Goods on consignment should be included in the inventory ofa. the consignor but not the consignee.b. the consignee but not the consignor.c. both the consignor and the consignee.d. neither the consignor nor the consignee.23. A company using a periodic inventory system neglected to record a purchase of merchandise on accountat year-end. This merchandise was omitted from the year-end physical count. How will these errors affectinventory at year-end and cost of goods sold for the year?Cost ofGoods SoldInventorya No effectb. UnderstateUnderstateNo effectUnderstateOverstatec. Understated. No effectIf goods shipped FOB destination are in transit at the end of the year, they should be included in theinventory balance of thea. seller.b. common carrier.24.с. buyer.d. bank.25. Merchandise shipped FOB shipping point on the last day of the year should ordinarily be included ina. the buyer's inventory balance.b. the seller's inventory balance.c. neither the buyer's nor seller's inventory balance.d. both the buyer's and the seller's inventory balances.26. The Narrows Company makes the following entry in its accounting records:

Cost of goods sold = Total inventory purchased - Ending inventory

23. A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise was omitted from the year-end physical count. How will these errors affect inventory at year-end and cost of goods sold for the year? Cost of Goods Sold Inventory a No effect b. Understate Understate No effect Understate c. Understate d. No effect Overstate