What happens if we make a mistake when counting the inventory at the end of the period? The results may AMAZE you...

Concept #1: Inventory Errors

Practice: A company had an ending inventory that was overstated by $5,000 due to a miscount during the year-end inventory count. The amounts reflected in the end of the period balance sheet are:

Practice: A company had a beginning inventory that was understated by $4,000 because the ending inventory in the previous period was understated by $4,000. The amounts reflected in the current end of period balance sheet are: