1. A year-end cut-off error occurred in 2017. A large shipment of nonperishable supplies arrived from South America on the last day of 2017 and had been left in the shipping containers outside the main plant. As a result, the supplies were recorded as received in 2018 and had not been included in the year-end 2017 inventory count. The account payable also had not been recorded in 2017. The supplies cost $140,000.

The company's tax rate is 30%

Required:

1. Prepare the necessary journal entry, if any, to correct the accounts as of January 1, 2019.