Goods in transit shipped “FOB destination” by a supplier wer…
Goods in transit shipped “FOB destination” by a supplier were recorded as a purchase but were excluded from ending inventory. Determine the effect of this error on the following financial statement line items using a periodic inventory system. Assume all purchases and sales are on credit. The following chart my assist you in your response: Beginning Inventory + Purchases = Available goods – Ending Inventory Cost of Goods Sold Sales – Cost of Goods Sold Net Income