The September 30 physical inventory failed to include $3,800 of


Question Description:

30

The September 30 physical inventory failed to include $3,800 of merchandise. These goods were purchased on credit but had not yet been recorded as a purchase or payable. What effect will this error have on the September 30 assets, liabilities, and income for the month ending, respectively? Overstate, overstate, no effect. None of these. Understate, understate, no effect. No effect, no effect, understate No effect, understate, overstate.

Answer

30