Answer:
Step-by-step explanation:
The computation of the difference amount would be
= Correct amount of inventory - incorrect amount of inventory
= $417,640 - $405,480
= $12,160
Balance Sheet Items Understated / Overstated Amount
Merchandise Inventory Understated $12,160
Current Assets Understated $12,160
Total Assets Understated $12,160
Owner's Equity Understated $12,160