Multiple Choice
An accounting clerk working for DBB neglected to record the purchase of merchandise in 20x1, which was, shipped f.o.b.shipping point on December 20, 20x1, and which arrived on December 31.The goods were included in the ending 20x1 inventory.What was the effect on DBB's 20x1 cost of goods sold?
A) Cost of goods sold was understated.
B) Cost of goods sold was overstated.
C) Cost of goods sold was correct.
D) Data are not available to determine effect on cost of goods sold.
Correct Answer:
Verified
Correct Answer:
Verified
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