Income for the year be overstated or understated

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Reference no: EM131032811

A clerical error, a company overstated by $50,000 the amount of inventory on hand at the end of the year. Will net income for the year be overstated or understated? Identify the two accounts on the year-end balance sheet that will be in error and indicate whether they will be understated or overstated.

Reference no: EM131032811

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