During its first and second years of operations, Forrester Company, a corporation using a periodic inventory system, made undiscovered errors in taking its year-end inventories that understated Year 1 ending inventory by $40,000 and overstated Year 2 ending inventory by $55,000.
The combined effect of these errors on reported income is:

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The Answer of During its first and second years of operations, Forrester Company, a corporation using a periodic inventory system, made undiscovered errors in taking its year-end inventories that understated Year 1 ending inventory by $40,000 and overstated Year 2 ending inventory by $55,000.
The combined effect of these errors on reported income is:

During Its First and Second Years of Operations, Forrester Company