Question 9 On September 28, 2017, Out to Get You, Corp. sold inventory, originally costing $6,900, for $7,500 on credit. The acc

Question

3 years ago

11

Question 9 On September 28, 2017, Out to Get You, Corp. sold inventory, originally costing $6,900, for $7,500 on credit. The acc

ountant for Out to Get You, Corp. forgot to record all entries related to this transaction. What is the effect of not recording these entries?

Business

1 answer:

Margaret [11] · Answer 1 · 2022-03-19T00:03:55+03:00

Answer:

The Cost of Goods Sold will be understated by $6,900 and the Sales Revenue will be understated by $2,500.

Explanation:

The sale of goods on credit will affect the Cost of sales and the Sales Revenue. The Cost of Goods Sold will be understated by $6,900 and the Sales Revenue will be understated by $2,500.