In the Year 2018, the Internal Auditors of Goofy Co

Essay

In the year 2018, the internal auditors of Goofy Co. discovered that goods costing $25 million that were purchased in December of 2017 were recorded for $20 million. The goods were properly measured in the December 31, 2017, ending physical inventory.
Required:
Prepare the journal entry needed in 2018 to correct the error. Also, briefly describe any other measures Goofy would take in connection with correcting the error. (Ignore income taxes.)