On April 1, 2020, you were hired by Binus Inc., a closely held company, as a staff member of its newly created internal auditing department. While reviewing the company’s records for 2018 and 2019, you discover that no adjustments have yet been made for the items listed below:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On April 1, 2020, you were hired by Binus Inc., a closely held company, as a staff member of its newly created internal auditing department. While reviewing the company’s records for 2018 and 2019, you discover that no adjustments have yet been made for the items listed below:

Merchandise inventory costing $24,000 was in the warehouse at December 31, 2018, but was incorrectly omitted from the physical count at that date. The company uses the periodic inventory method.

Explain the problems for each items and prepare journal entries showing the adjustments that are required!

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