Reference no: EM132973493

Question - Myers Retail Ltd.'s fiscal year end is June 30. The following errors were discovered on July 3, 2021, as Myers was completing its year-end process.

a) When the inventory was counted on June 30, 2020, the inventory stored in a small room at the back of the warehouse was missed, and wasn't included in the beginning inventory. The cost of this inventory was $28,000.

b) Myers sold product on behalf of another company (Corleone Ltd.). When the inventory was counted on June 30, 2021, $6,200 of inventory on consignment for Corleone was accidentally included in Myers' inventory.

c) On June 25, 2021, Myers ordered $8,400 of merchandise from one of its suppliers. The terms of the purchase were fob shipping point. The inventory was included in Myers' year-end inventory count on June 30; however, the purchase of the inventory was not recorded on Myers' books until the merchandise arrived on July 2, 2021.

d) On February 2, 2021, Myers received an invoice from a supplier for $8,600 for the purchase of inventory. Myers' accounts payable clerk accidentally entered the invoice as $6,800.

e) February 2, 2021 was a bad day for Myers' accounts payable clerk. In addition to the error above, the invoice for shipping the above inventory ($600) was coded to "Miscellaneous expense" instead of being included as part of the cost of the inventory.

REQUIRED - For each of the errors described above, describe the effect on Myers Retail's net income for the year ended June 30, 2021.