Using the information from BE21-12, prepare the journal entry necessary 10 correct the inventory error, assuming that

Question:

Using the information from BE21-12, prepare the journal entry necessary 10 correct the inventory error, assuming that Barin's controller discovered the error in 2017 after the books had been closed for 2016. Ignore any income tax effects.

BE21-12

Sarin Retail Outlets incorrectly recorded inventory in 2016. Rather than recording ending inventory as $960,000, Barin's accounting manager entered $690.000, understating ending inventory b y $270.000. Barin's controller discovered the error in 2018. Prepare the journal entry necessary 10 correct the inventory error, ignoring any income tax effects.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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