An entry to record Purchases and related Accounts Payable of 130,000 for merchandise purchased on December 23,

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An entry to record Purchases and related Accounts Payable of ¥130,000 for merchandise purchased on December 23, 2022, was recorded in January 2023. This merchandise was not included in inventory at December 31, 2022. What effect does this error have on reported net income for 2022? What entry should be made to correct for this error, assuming that the books are not closed for 2022?

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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