Mertens Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,700, and its ending inventory on December 31 was understated by $16,300. In addition, a purchase of merchandise costing $20,700 was incorrectly recorded as a $2,070 purchase. None of these errors were discovered until the next year. As a result, taxable income for this year was:

The answer is, The taxable income for this year was Understated by $3,230

Explanation:

Solution

Particulars: Under statement of beginning inventory January 1.

Amount: 31700

The Effect on taxable income :Overstated

Particulars: Under statement of Ending inventory December 31

Amount: -16300

The Effect on taxable income: Understated

Particulars: Purchases of Incorrect record of  ($20700-$2070)

Amount: -18630

The Effect on taxable income: Understated

Particulars:Net Effect on taxable income for above transactions

Amount: -3230

The Effect on taxable income: Understated

Therefore, from the above information from the question stated, the taxable income for this year was Understated by $ 3,230

borrow money from the government then pay the government back 5k

the law, public safety, corrections, and security cluster prepares people for careers in planning, managing, and providing legal, public safety, protective services and homeland security, including professional and technical support services.