Question
ABC Inc buys inventory from various suppliers. ABC Inc policy requires that a prenumbered receiving report be prepared for each receipt. All purchases are FOB
ABC Inc buys inventory from various suppliers. ABC Inc policy requires that a prenumbered receiving report be prepared for each receipt. All purchases are FOB destination. At the time of receipt, the receiving clerk writes the receipt date on the receiving report. The last receipt for the year ended December 31 2019 was recorded on document 4335. Receiving reports are attached to vouchers in the order that the accounting clerk receives the receiving report.
For late December and early January, receiving reports are attached to vouchers as follows:
| Receiving Report No. |
|
| Voucher No. |
| |||
4331 | 8327 | |||||||
4332 | 8331 | |||||||
4333 | 8332 | |||||||
4334 | 8335 | |||||||
4335 | 8336 | |||||||
4336 | 8333 | |||||||
4337 | 8334 | |||||||
4338 | 8338 | |||||||
4339 | 8340 | |||||||
4340 | 8339 | |||||||
PURCHASE JOURNAL -- December 2019 | ||||||||
Day of Month |
|
| Voucher No. |
|
| Amount of Purchase | ||
29 | 8332 | 834.11 | ||||||
29 | 8336 | 5,541.99 | ||||||
29 | 8334 | 2,763.56 | ||||||
30 | 8340 | 47.77 | ||||||
30 | 8327 | 1,476.95 | ||||||
PURCHASE JOURNAL -- January 2020 | ||||||||
Day of Month |
|
| Voucher No. |
|
| Amount of Purchase | ||
2 | 8338 | 3,540.52 | ||||||
2 | 8335 | 4,219.50 | ||||||
3 | 8333 | 6,795.80 | ||||||
3 | 8331 | 4,732.32 | ||||||
3 | 8339 | 646.58 |
Required: Determine which inventory receipts, if any, are recorded in the wrong accounting period. Based on your determination, prepare an adjusting entry to correct the financial statements for the year ended December 31 2019. Assume that the company uses a periodic inventory system (inventory and cost of sales do not need to be adjusted).
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