In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise
Question:
In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise in 2021 was recorded in 2020 instead. The physical inventory count at the end of 2020 was correct.
Required:
Prepare the journal entry needed in 2021 to correct the error. Also, briefly describe any other measures Development Technologies would take in connection with correcting the error.
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Step by Step Answer:
1 To include the 4 million in year 2021 purchases and increase retained earnings to what it would ha...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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