Essay
In 2018, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2017 were in transit on December 31. The goods were recorded as a purchase in December of 2017 but were not included in the 2017 year-end inventory.
Required:
Prepare the journal entry needed in 2018 to correct the error. Also, briefly describe any other measures Blooper would take in connection with correcting the error. (Ignore income taxes.)
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($ in millions)
Inventory 12
Retained ...View Answer
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Correct Answer:
Verified
($ in millions)Inventory 12
Retained ...
View Answer
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Get Access to more Verified Answers free of charge
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