In 2024, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise
Question:
In 2024, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise in 2024 was recorded in 2023 instead. The physical inventory count at the end of 2023 was correct.
Required:
Prepare the journal entry needed in 2024 to correct the error. Also, briefly describe any other measures Development Technologies would take in connection with correcting the error. (Ignore income taxes.)
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1 To include the 4 million in year 2024 purchases and increase retained earnings to what it would ha...View the full answer
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