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The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $465.000. Included in that coun was a shipment

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The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $465.000. Included in that coun was a shipment of goods received from a supplier at the end of the month that cost $65,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $27.500 was correctly recorded as a purchase in 2018. However, the merchandise, shippec FOB shipping point, was not received until 2019 and was incorrectly omitted from the physical count. A third purchase, shipped from a supplier FOB shipping point on December 28, 2018, did not arrive until January 3, 2019. The merchandise, which cost $95,000, was not included in the physical count and the purchase has not yet been recorded The company uses a periodic inventory system Required: 1. Determine the correct December 31, 2018, inventory balance and, assuming that the errors were discovered after the 2018 financial statements were issued, analyze the effect of the errors on 2018 cost of goods sold, net income, and retained earnings. (gnore income taxes) 2. Prepare a journal entry to correct the errors es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct December 31, 2018, inventory balance and, assuming that the errors were discovered after the 2018 financial statements were issued, analyze the effect of the errors on 2018 cost of goods sold, net income, and retained earnings. (lgnore income taxes.) Effect Amount Comect ending imventory Cost of goods sold Net income Prey 7 of 7 Next S0 % & 3 4 5 6 7 W E R Y U O P S D F G H X C B N M mand command option CO (n ed Assignmehts The company uses a periodic inventory system. Required: 1. Determine the correct December 31, 2018, inventory balance and, assuming that the errors statements were issued, analyze the effect of the errors on 2018 cost of goods sold, net incon income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Requires Required 1 Required 2 Determine the correct December 31, 2018, inventory balance and, assuming that the errorss were financial statements were issued, analyze the effect of the errors on 2018 cost of goods sold, net earnings. (Ignore income taxes.) Effect Amount Correct ending inventory Cost of goods sold Net income Retained earnings Required 2

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