West Corporation's Year 1 Ending Inventory Was Overstated by $20,000;however,ending

question 31

Multiple Choice

West Corporation's Year 1 ending inventory was overstated by $20,000;however,ending inventory for Year 2 was correct.Which of the following statements is correct?

• A)Net income for Year 1 is understated.
• B)Retained earnings at the end of Year 2 is overstated.
• C)Cost of goods sold for Year 1 is overstated.
• D)Cost of goods sold for Year 2 is overstated.

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