Chapter 9, Problem 2CMA

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To Find: The correct option if during the year, inventory shipped correctly excluded from ending inventory although the sale was not recorded.