During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2022 net income after year-end adjusting journal entries? Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.

During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2022 net income after year-end adjusting journal entries? Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...

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At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.
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During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he has $35,000 of inventory when $20,000 actually exists (i.e., overcounts his ending inventory by $15,000). What is the effect of this miscount on 2023 net income after year-end adjusting journal entries? Assume the 2023 inventory count is correct. Enter a positive number if net income is overstated, 0 if net income is accurate, and a negative number if net income is understated. For example, if net income is overstated by 10 dollars, you would enter 10. If net income were understated by 10 dollars, you would enter -10.
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