Refer to Practice 20 12 Assume that in addition to failing to record the purchase, the company also failed to include the inventory in the ending inventory count Make the correcting entry necessary the following May, assuming that the company uses (1) The periodic inventory method and (2) The perpe...

1 Inventory 10000 Purchases 10000 2 No correcting entry ...

Refer to Practice 20-12. Assume that in addition to failing to record the purchase, the company also

Question:

Refer to Practice 20-12. Assume that in addition to failing to record the purchase, the company also failed to include the inventory in the count. Make the correcting entry necessary the following May, assuming that the company uses
(1) The periodic inventory method and
(2) The perpetual inventory method. Ignore income taxes.

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 =...