At the statement of financial position date, Clarkson Company held title to goods in transit amounting to

Question:

At the statement of financial position date, Clarkson Company held title to goods in transit amounting to $214,000. This amount was omitted from the purchases figure for the year and also from the . What is the effect of this omission on the net income for the year as calculated when the books are closed? What is the effect on the company's statement of financial position? Is materiality a factor in determining whether an adjustment for this item should be made?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...