Begin with the journal entry to fix the error in scenario$($a$).($Record debits$$ first, and then credits. Explanations are not$$ required.$)$

a$.$ You determine that inventory at the end of $20232023$ was overstated by $ $18$ comma $000$$$18,000$ due to a counting error. Inventory at the end of $20242024$ was correctly stated.

Accounts

Debit

Credit

Part $2$

$$Now$,$ record the journal entry to correct the error in scenario$($b$).$

b$.$ You neglected to record an invoice for $ $23$ comma $000$$$23,000$ for inventory that was received in December $20232023.$ The inventory was recorded as purchases in January $20242024,$ when the invoice was paid. The goods were included in the $20232023$ inventory count and included in ending inventory on the $20232023$ financial statements.

Accounts

Debit

Credit

Part $3$

$$Finally$,$ prepare the journal entry to correct the error in scenario$($c$).$

c$.$ You determine that $ $37$ comma $000$$$37,000$ of goods received on a consignment basis were included in the physical count of goods at the end of $20242024$ and included in ending inventory on the financial statements.

Accounts

Debit

Credit