Essay
In 2013, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2012 were in transit on December 31. The goods were recorded as a purchase in December of 2012 but were not included in the 2012 year-end inventory.
Required:
Prepare the journal entry needed in 2013 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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• The 2012 financial statements that ...View Answer
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Correct Answer:
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• The 2012 financial statements that ...View Answer
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