Did the error cause an overstatement or an understatement of the gross profit for the year?

Learning Goal: I’m working on a business discussion question and need guidance to help me learn.Week 6 DiscussionPlease note that this discussion board will require a minimum of three posts. These consist of your initial post, your response to comments that I post to your thread, and at least one response to a classmate. If you post late in the week, it’s possible that I may not be able to provide a comment to you. In that case, please be sure to provide response posts to at least two classmates.Chapter 7: InventoryAdditionally, please refer to Chapter 7 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.Requirement 1:The inventory at the end of the year was understated by $14,750. (a) Did the error cause an overstatement or an understatement of the gross profit for the year? (b) Which items on the balance sheet at the end of the year were overstated or understated as a result of the error?Requirement 2:Why is it important to take a physical inventory periodically when using a perpetual inventory system?In Financial Accounting I, you learned that the cost concept of accounting requires accountants to record all items purchased at their cost. In Chapter 7 of your Cengage Accounting eText, you learned that inventory may be written down to its current replacement cost or its net realizable value if these amounts are lower than original cost. Why do you think the accounting profession has decided to violate the cost concept and reduce the value of inventory in these circumstances?Responses to Classmates:Please explain to your classmates why it is important to take a physical inventory periodically when using a perpetual inventory system.Response to Instructor:Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.Writing:Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum. Additionally, check your spelling and proofread your post before you hit the submit button.APA Citation
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