At year end, after preparing the financial statements, four errors were found. The first line in the tabulation below gives the uncorrected amounts. You are to develop the correct amount on the bottom line by entering the corrections for each error; indicate subtractions with parentheses. Assume a periodic inventory system.
Income Statement for
Balance sheet 12/31/2003, year ending 12/31/2003

\begin{array}{|l|l|l|l|l|l|l|}\hline &\text { Assets } & \text { Liabilities } & \begin{array}{l}\text { Owners' } \\\text { Equity }\end{array} & \text { Revenue } & \begin{array}{l}\text { Cost of } \\\text { Goods Sold }\end{array} & \begin{array}{l}\text { Gross } \\\text { Margin }\end{array} \\\hline \text { Reported amounts (uncorrected) } & 16,000 & 4,000 & 12,000 & 18,000 & 10,000 & 8,000 \\\hline \text { 1. Beg. } 2003 \text { invoice understated by } \$ 160 & & & & & & \\\hline \begin{array}{l}\text { 2. } 2003 \text { credit purchase } \$ 200 \text {; not recorded or inventoried in } \\\text { 2003. }\end{array} & & \\\hline \text { 3. Ending } 2003 \text { invoice overstated by } \$ 600 & & \\\hline\text { 4. } 2003 \text { credit sales of } \$ 1,000 \text { not recorded in } 2003 \text {; cost of }\\\text { goods sold amount } \$ 600 \text {; not included in } 2003 \text { ending }\\\text { inventory. }\\\hline\end{array}

Which of the Following Should Be Included in the Inventory

Multiple Choice

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