Medicine, 20.12.2019 21:31 3076850

Goods in transit at year-end purchased fob shipping point were appropriately recorded in the purchases account but were incorrectly excluded from the ending inventory. what effect will this omission have on the company's assets, liabilities, and retained earnings at year-end?

a. no effect, no effect, overstated
b. no effect, no effect, understated
c. understated, no effect, overstated
d. understated, no effect, understated

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