The December 3 1 , 2 0 2 4 , inventory of Tog Company, based on a physical count, was determined to be $ 4 5 0 , 0 0 0 Included in that count was a shipment of goods received from a supplier at the end of the month that cost $ 5 0 , 0 0 0 The purchase was recorded and paid for in 2 0 2 5 Another supplier shipment costing $ 2 0 , 0 0 0 was correctly recorded as a purchase in 2 0 2 4 However, the merchandise, shipped FOB shipping point, was not received until 2 0 2 5 and was incorrectly omitted from the physical count A third purchase, shipped from a supplier FOB shipping point on December 2 8 , 2 0 2 4 , did not arrive until January 3 , 2 0 2 5 The merchandise, which cost $ 8 0 , 0 0 0 , was not included in the physical count and the purchase has not yet been recorded The company uses a periodic inventory system Required Determine the correct December 3 1 , 2 0 2 4 , inventory balance and, assuming that the errors were discovered after the 2 0 2 4 financial statements were issued, analyze the effect of the errors on 2 0 2 4 cost of goods sold, net income, and retained earnings ( Ignore income taxes ) Prepare a journal entry to correct the errors

Question

The December 3 1 , 2 0 2 4 , inventory of Tog Company, based on a physical count, was determined to be $ 4 5 0 , 0 0 0   Included in that count was a shipment of goods received from a supplier at the end of the month that cost $ 5 0 , 0 0 0   The purchase was recorded and paid for in 2 0 2 5   Another supplier shipment costing $ 2 0 , 0 0 0 was correctly recorded as a purchase in 2 0 2 4   However, the merchandise, shipped FOB shipping point, was not received until 2 0 2 5 and was incorrectly omitted from the physical count  A third purchase, shipped from a supplier FOB shipping point on December 2 8 , 2 0 2 4 , did not arrive until January 3 , 2 0 2 5   The merchandise, which cost $ 8 0 , 0 0 0 , was not included in the physical count and the purchase has not yet been recorded  The company uses a periodic inventory system  Required  Determine the correct December 3 1 , 2 0 2 4 , inventory balance and, assuming that the errors were discovered after the 2 0 2 4 financial statements were issued, analyze the effect of the errors on 2 0 2 4 cost of goods sold, net income, and retained earnings  ( Ignore income taxes  ) Prepare a journal entry to correct the errors

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The December 3 1 , 2 0 2 4 , inventory of Tog Company, based on a physical count, was determined to be $ 4

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