Inventory error
Response to the following :
Refer to the situation described in problem 1. What steps would be taken to report the error in the 2016 financial statements?
Problem 1:
In 2016, Winslow International, Inc.'s controller discovered that ending inventories for 2014 and 2015 were overstated by $200,000 and $500,000, respectively. Determine the effect of the errors on retained earnings at January 1, 2016. (Ignore income taxes.)