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

---

Definitions:

Tokenism

A condition in which a person is visibly identified as a minority in a dominant culture. These people are identified as representative of their minority groups, and any failure is viewed as a failing of the minority group to which they belong. Tokenism is a creation of the perceptual and communication practices of those who shape the dominant culture of the organization.

Corporate Setting

An environment related to, or characteristic of, a corporation, often involving business operations and professional interactions.

Dominant Culture

The established beliefs, values, and practices that significantly influence society, often set by the majority or ruling group.

Affirmative Action

Policies and practices designed to combat discrimination and promote equal opportunity in employment, education, and other areas.