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Financial Accounting

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Inventory Errors: Ending Inventory Over and Purchases twice

FINACT-YBCLVF

Spring Corporation uses a Periodic Inventory System and reports Merchandising Inventory on the Balance Sheet at \$225,000 on December 31, 2016. During 2017, the accounting department identifies two errors. Ending Inventory for 2016 is overstated by \$18,000, and a purchase during 2016 in the amount of \$8,000 was recorded twice.