The sales manager of Sebastian Company failed to record a valid sale on account of merchandise that had been shipped to a customer prior to the end of the current year; however, the company uses a periodic method of accounting for inventory and the merchandise had been properly excluded from inventory at the end of the current year. As a result of this error, Sebastian Company's
a. total assets are overstated for the current year.
b. total expenses are understated for the current year.
c. net income is overstated for the current year.
d. total assets are understated at the end of the current year.
e. none of the above.
D
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