07 Jan Ross Corporation shipped finished goods to a custo
Ross Corporation shipped finished goods to a customer on credit, but the sale was not recorded and the costs of the finished goods were incorrectly included on the period s balance sheet as part of the finished goods inventory. Which one of the followingstatements is correct concerning the effects of this error?A) Accounts receivable was not affected, inventory was overstated, sales were understated, and cost of goods sold was understated.B) Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was understated.C) Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated.D) Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was understated.
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