Question
Costco Inc. inadvertently excluded $2 million of sales and related receivables on October 20, 2019. The receivables were later received in cash on time on
Costco Inc. inadvertently excluded $2 million of sales and related receivables on October 20, 2019. The receivables were later received in cash on time on Jan 5, 2020 and sales were recorded then. If the error was discovered on March 5, 2021, the journal entry to correct for the error will include (ignore taxes)
| A credit to Retained Earnings for $2 million |
| A credit to Receivables for $ 2 million |
| A debit to Sales Revenue for $2 million |
| No entry is needed. |
| A debit to Receivables for $2 million |
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Payroll Accounting
Authors: Bernard J. Bieg, Judith A. Toland
2013 edition
113396253X, 978-1133962533
