Tarleton Company Discovered Ending Inventory Errors in 2015 and 2016

question 33

Essay

Tarleton Company discovered ending inventory errors in 2015 and 2016.The 2015 ending inventory was overstated by $205,000 whereas the 2016 ending inventory was understated by $75,000.Ignoring income tax effects,by what amount should the beginning retained earnings be adjusted on January 1,2017?
A)$75,000 debit
B)$75,000 credit
C)$130,000 debit
D)$205,000 credit

• A)$75,000 debit
• B)$75,000 credit
• C)$130,000 debit
• D)$205,000 credit

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Definitions:

Estrogen

A group of hormones that play a crucial role in the development and regulation of the female reproductive system and secondary sex characteristics.

Prolactin

A hormone produced by the pituitary gland that plays an essential role in lactation, stimulating milk production after childbirth.

Vaginal Insertion

The act of placing an object or substance into the vagina for medical, sexual, or other purposes.

Vaginal Dryness

A condition characterized by a lack of lubrication in the vaginal area, often causing discomfort or pain, typically associated with menopause.