A firm's balance sheet contains errors in accounting for inventory. All inventory on hand was counted and priced correctly. What could be one explanation for an error? The firm did not properly recognize the transfer of legal title to goods that are in transit. The firm did not properly recognize the transfer of legal title for overstocked merchandise. The firm did not properly recognize the transfer of legal title for services rendered. The firm did not properly recognize the transfer of legal title to goods that were ordered but not yet shipped to customers. Save for Later Last saved 1 second ago. Submit