An entry to record Purchases and related Accounts Payable of \130,000 for merchandise purchased December 23, 2019, was recorded in January 2020. This merchandise was not included in inventory at December 31, 2019. What effect does this error have on reported net income for 2019? What entry should be made to correct for this error, assuming that the books are not closed for 2019?

An entry to record Purchases and related Accounts Payable of \130,000 for merchandise purchased December 23, 2019, was recorded in January 2020. This merchandise was not included in inventory at December 31, 2019. What effect does this error have on reported net income for 2019? What entry should be made to correct for this error, assuming that the books are not closed for 2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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