In 2011, the internal auditors of Development Technologies, Inc. discovered that a $4 million purchase of merchandise

Question:

In 2011, the internal auditors of Development Technologies, Inc. discovered that a $4 million purchase of merchandise in 2011 was recorded in 2010 instead. The physical inventory count at the end of 2010 was correct.


Required:

Prepare the journal entry needed in 2011 to correct the error. Also, briefly describe any other measures Development Technologies would take in connection with correcting the error.


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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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