On 12/31/2023, Dita Corp. made a journal entry error when it recorded one of its purchases of inventory on account. Rather than recording the inventory purchase for $420,000, it recorded the amount as $450,000 in both the "Inventory" and "Accounts Payable" accounts. The payable is still outstanding at the end of 2023. The cost of ending inventory is correctly stated at the end of 2023. 

Question: As a result of the inventory purchase error, how will the company's net income be affected in 2023?  

Answer rating: 100% (QA)

The inventory purchase error will affect the companys net income in 2023 because it resulted in an o... View the full answer