4. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on Dec. 31 because they had not arrived by Dec. 31.

5. The internal auditors discovered that the ending inventory in the previous period was understated $30,000 and that the ending inventory in the current period was overstated $40,000. INSTRUCTIONS: For each event, analyze the impact on the indicated items at the end of the current year by placing the appropriate code letter in the box below under each item. Code”O”= item is overstated； Code”U”= item is understated； Code”NA”= item is not affected. Please copy the he box below in your answer sheet and fill in it.

題組內容

4. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on Dec. 31 because they had not arrived by Dec. 31.

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