The internal audit department discovered the following items: 1. Goods valued at $42,000 held on consignment...

 

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The internal audit department discovered the following items: 1. Goods valued at $42,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase. 2. Purchases from Xavier Corporation were incorrectly recorded at $62,000 instead of the correct amount of $26,000. The correct amount was included in the ending inventory. 3. Goods that cost $35,000 were shipped from a vendor on December 28, 2021, terms FOB destination. The merchandise arrived on January 3, 2022. The purchase and related accounts payable were recorded in 2021. 4. One inventory item was incorrectly included in ending inventory as 200 units, instead of the correct amount of 1,500 units. This item cost $30 per unit. 5. The 2020 balance sheet reported inventory of $452,000. The internal auditors discovered that a mathematical error caused this inventory to be understated by $72,000. This amount is considered to be material. Comparative financial statements will be issued. 6. Goods shipped to a customer FOB destination on December 25, 2021, were received by the customer on January 4, 2022. The sales price was $50,000 and the merchandise cost $27,000. The sale and corresponding accounts receivable were recorded in 2021. 7. Goods shipped from a vendor FOB shipping point on December 27, 2021, were received on January 3, 2022. The merchandise cost $28,000. The purchase was not recorded until 2022. Required: 1. Determine the correct amounts for 2021 purchases, accounts payable, sales revenue, and accounts receivable. 2. Calculate ending inventory and cost of goods sold for 2021. 3. What was the effect of the error in ending inventory on 2020 before-tax income? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Determine the correct amounts for 2021 ending inventory, purchases, accounts payable, accounts receivable, sales revenue, and cost of goods sold. Ending inventory Purchases Accounts payable Accounts receivable Sales revenue Cost of goods sold < Req 1 and 2 Req 3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Determine the correct amounts for 2024 ending inventory, purchases, accounts payable, accounts receivable, sales revenue, and cost of goods sold. Ending inventory Purchases Accounts payable Accounts receivable Sales revenue Cost of goods sold The internal audit department discovered the following items: 1. Goods valued at $42,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase. 2. Purchases from Xavier Corporation were incorrectly recorded at $62,000 instead of the correct amount of $26,000. The correct amount was included in the ending inventory. 3. Goods that cost $35,000 were shipped from a vendor on December 28, 2021, terms FOB destination. The merchandise arrived on January 3, 2022. The purchase and related accounts payable were recorded in 2021. 4. One inventory item was incorrectly included in ending inventory as 200 units, instead of the correct amount of 1,500 units. This item cost $30 per unit. 5. The 2020 balance sheet reported inventory of $452,000. The internal auditors discovered that a mathematical error caused this inventory to be understated by $72,000. This amount is considered to be material. Comparative financial statements will be issued. 6. Goods shipped to a customer FOB destination on December 25, 2021, were received by the customer on January 4, 2022. The sales price was $50,000 and the merchandise cost $27,000. The sale and corresponding accounts receivable were recorded in 2021. 7. Goods shipped from a vendor FOB shipping point on December 27, 2021, were received on January 3, 2022. The merchandise cost $28,000. The purchase was not recorded until 2022. Required: 1. Determine the correct amounts for 2021 purchases, accounts payable, sales revenue, and accounts receivable. 2. Calculate ending inventory and cost of goods sold for 2021. 3. What was the effect of the error in ending inventory on 2020 before-tax income? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Determine the correct amounts for 2021 ending inventory, purchases, accounts payable, accounts receivable, sales revenue, and cost of goods sold. Ending inventory Purchases Accounts payable Accounts receivable Sales revenue Cost of goods sold < Req 1 and 2 Req 3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Determine the correct amounts for 2024 ending inventory, purchases, accounts payable, accounts receivable, sales revenue, and cost of goods sold. Ending inventory Purchases Accounts payable Accounts receivable Sales revenue Cost of goods sold