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C. Goode Eyeglasses overstated its inventory by $30,000 at the end of 2021. If the error is not discovered until 2023, before adjusting or closing entries, C. Goode would need:_______
A) A prospective achjustment in the 2022 income statement
B) An increase in 2023 retained comings
C) A debit to inventory of $30,000 in 2023
D) None of these answer choices are correct

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Answer:

D) None of these answer choices are correct

Explanation:

As C. Goode Eyeglasses company overstated its inventory in year end 2021:

Its closing stock of 2021 is overvalued by $30,000.

Its opening stock of 2022 is also overvalued by $30,000.

This error will not impact 2023. Therefore, C. Goode Eyeglasses company will not adjust this error.  Hence,  Option 'd' is correct and rest all are incorrect.

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