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error was due to purchases

error was due to purchases

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, MAKISIG Company which uses the periodic system of recording inventory, reported a net income of P200,000. The correct net income was P250,000. lt was determined that the beginning and ending inventory were overstated by P20,000 and P15,000 respectively. The remaining error was due to purchases which was 15,000 A. overstated 15,000 B. 45,000 C. understated 45,000 D. overstated understated O A OB C. OD
Transcribed Image Text:In 2020, MAKISIG Company which uses the periodic system of recording inventory, reported a net income of P200,000. The correct net income was P250,000. lt was determined that the beginning and ending inventory were overstated by P20,000 and P15,000 respectively. The remaining error was due to purchases which was 15,000 A. overstated 15,000 B. 45,000 C. understated 45,000 D. overstated understated O A OB C. OD
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