An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on December 23,
Question:
An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on December 23, 2026, was recorded in January 2027. This merchandise was not included in inventory at December 31, 2026. What effect does this error have on reported net income for 2026? What entry should be made to correct for this error, assuming that the books are not closed for 2026?
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This error has no effect on net income because b...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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