Prepare a journal entry to correct the errors.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the entry to correct inventory valuation.

Note: Enter debits before credits.The December $31,2024,$ inventory of Tog Company, based on a physical count, was determined to be $$470,000.$ Included in that

count was a shipment of goods received from a supplier at the end of the month that cost $$70,000.$ The purchase was recorded and

paid for in $2025.$ Another supplier shipment costing $$30,000$ was correctly recorded as a purchase in $2024.$ However, the

merchandise, shipped FOB shipping point, was not received until $2025$ and was incorrectly omitted from the physical count. A third

purchase, shipped from a supplier FOB shipping point on December $28,2024,$ did not arrive until January $3,2025.$ The merchandise,

which cost $$100,000,$ was not included in the physical count and the purchase has not yet been recorded.

The company uses a periodic inventory system.

Required:

Determine the correct December $31,2024,$ inventory balance and, assuming that the errors were discovered after the $2024$

financial statements were issued, analyze the effect of the errors on $2024$ cost of goods sold, net income, and retained earnings.

$($Ignore income taxes.$)$

Prepare a journal entry to correct the errors.

Complete this question by entering your answers in the tabs below.

Required $1$

Determine the correct December $31,2024,$ inventory balance and, assuming that the errors were discovered after the $2024$

financial statements were issued, analyze the effect of the errors on $2024$ cost of goods sold, net income, and retained

earnings. $($Ignore income taxes.$)$