Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry. To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings .

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Answer 1

Question

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

2.

To determine

To prepare: a journal entry to correct the errors

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

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Net sales total $680,000. Beginning and ending accounts receivable are $58,000 and $64,000, respectively. Calculate days' sales in receivables.

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Answer 2

Question

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

2.

To determine

To prepare: a journal entry to correct the errors

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

2.

To determine

To prepare: a journal entry to correct the errors

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

2.

To determine

To prepare: a journal entry to correct the errors

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

2.

To determine

To prepare: a journal entry to correct the errors

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Answer 6

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

Answer 7

Chapter 9, Problem 9.13P

1.

To determine

Inventory errors: It refers to the errors that result in overstatement or understatement of ending inventory caused due to wrong physical inventory count or wrong price fixation of the inventory quantities. It also includes overstatement or understatement of purchases caused to wrong inventory cut-off. These errors are rectified by reversing the original erroneous entry and recording the correct entry.

To analyze: the effects of the errors on 2015 and 2014 cost of goods sold, net income, and retained earnings.

Answer 8

2.

To determine

To prepare: a journal entry to correct the errors

Answer 9

2.

To determine

To prepare: a journal entry to correct the errors

Answer 10

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Answer 11

3.

To determine

To Explain: the other steps that would be taken in connection with the correction of the errors.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Describe the alternative approaches for recording...Ch. 9 - Explain the gross profit method of estimating...Ch. 9 - The Rider Company uses the gross profit method to...Ch. 9 - Explain the retail inventory method of estimating...Ch. 9 - Both the gross profit method and the retail...Ch. 9 - Define each of the following retail terms: initial...Ch. 9 - Explain how to estimate the average cost of...Ch. 9 - Prob. 9.10Q

Concept explainers

To prepare: a journal entry to correct the errors

To Explain: the other steps that would be taken in connection with the correction of the errors.

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Chapter 9 Solutions