In the Following Questions, Inventory Errors Are Noted for 2018

question 20

Essay

In the following questions, inventory errors are noted for 2018. Assume that the errors are not discovered until 2019, and that the company uses a periodic inventory system. Indicate the effect of the error, if any, on the accounts noted in the columns, using the following code:
U = Understated; O = Overstated; NE = No effect

- $\begin{array}{|c|c|c|}\hline {\text { Error }} & \text { Cost of goods sold } & \text { Retained earnings } \\\hline \text { Recorded purchases for } \$ 523,000 \text { that } & & \\\text { should have been } \$ 532,000 . &\\\hline \end{array}$

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Definitions:

Relaxation

The act or state of reducing tension or stress, often achieved through techniques such as meditation, deep breathing, or muscle relaxation exercises.

Fear Response

The automatic, immediate reaction to a threatening situation, often characterized by physiological changes like increased heart rate.

Unconditioned Stimulus

In classical conditioning, this is a stimulus that elicits a natural, reflexive response without the need for prior learning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually evoked by the first stimulus alone.