Two separate errors affected dryer shirts in 20x4 the, Ask an Expert

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Two separate errors affected Dryer Shirts in 20X4. The beginning inventory was overstated by $17,000 and the ending inventory was overstated by $23,000. Ignoring taxes, net income in 20X4 will be:

a. overstated by $40,000 b. understated by $23,000 c. overstated by $23,000 d. overstated by $6,000 e. understated by $40,000 Why is the answer d can someone explain? thanks.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91786075

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