Courtney's Cafes,Inc.CFO discovered a series of errors in its inventory system in early 2018,when he was making year-end adjustments to the financial statements for 2017.The errors began in 2015.Below is a summary of the sales and cost of goods sold on income statement items for the three years:
Upon further analysis,the CFO determined that each of the years had ending inventory errors.The correct amounts for the years were: 2015,$63,000; 2016,$101,000; and 2017,$106,000.The amounts for 2015 beginning inventory and all purchases are correct as stated.
Required:
Definitions:
Stroop Effect
A phenomenon in cognitive psychology where there is a delay in the reaction time of a task when the color of words on a test and their meaning differ.
Ink Color
Ink color refers to the pigment or dye-based constitution that determines the visual perception of ink used in writing, printing, drawing, or any form of marking.
Cognitive Psychologist
a professional specializing in the study of mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."
Thought Process
The mental operation involved in cognitive functions such as reasoning, remembering, imagining, or learning.
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