In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4.5 million purchase of merchandise in 2021 was recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic inventory system. Required: Prepare the journal entry needed in 2021 to correct the error. (ignore income taxes.) (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Credit Debit 4,500,000,000 1 Purchases 4,500,000,000 Retained earnings

In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4.5 million purchase of merchandise in 2021 was recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic inventory system. Required: Prepare the journal entry needed in 2021 to correct the error. (ignore income taxes.) (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Credit Debit 4,500,000,000 1 Purchases 4,500,000,000 Retained earnings

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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Question

ms awa
In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4.5 million purchase of merchandise in 2021 was
recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic
Inventory system.
Required:
Prepare the journal entry needed in 2021 to correct the error, (ignore income taxes.) (Enter your answers in millions rounded to 1
decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
Event
General Journal
Credit
No
1
Debit
4,500,000,000
Purchases
4,500,000,000
Retained earnings

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