Essay
Morton Watch Company reported the following income statement data for a 2-year period. 
Morton uses a periodic inventory system. The inventories at January 1, 2017, and December 31, 2018, are correct. However, the ending inventory at December 31, 2017, was overstated $5,000.
Instructions
(a) Prepare correct income statement data for the 2 years.
(b) What is the cumulative effect of the inventory error on total gross profit for the 2 years?
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Correct Answer:
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(b) The cumulat...View Answer
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