Roesel Fashions Completed a Physical Inventory at the End of the Current

Essay

Roesel Fashions completed a physical inventory at the end of the current year. A review of the physical inventory procedures and records uncovered several errors that are described below. In the columns provided, indicate the effect, if any, on the four financial statement items listed. Use the following codes for your answers:
O = Overstatement; U = Understatement; NE = No Effect