申論題

五、Linden Watch Company reported the following income statement data for a 2-year period.  Linden uses a periodic inventory system. The inventories at January 1，2013, and December 31, 2014, are correct. However, the ending inventory at December 31, 2013, was overstated $5,000. Instructions

(a) Prepare correct income statement data for the 2 years. (7%)