Penny Company made an inventory count on December 31, 2018. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, 2018, the effects of this error are

Respuesta :

Answer: Overstated, no effect, Overstated

Explanation:.

Since there's a double counting, this will lead to the overstating of the inventory which brings about an increase in the asset.

On the other hand, there's no effect on the liability. Lastly, the stockholder's equity is overstated as well as there's an increase the net income due to the overstated inventory.