Merchandise inventory at the end of the year was inadvertently overstated. which of the following statements correctly states the effect of the error on net income, assets, and owner's equity? net income is overstated, assets are overstated, and owner's equity is understated net income is understated, assets are understated, and owner's equity is overstated net income is understated, assets are understated, and owner's equity is understated net income is overstated, assets are overstated, and owner's equity is overstated

Double corporation acquired all of the common stock of simple company for

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.

Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?