You are the senior on the December 31 annual audit of an automotive parts wholesaler in good financial condition with total assets of $10 million and pre-adjustment net income of $200,000, The client uses the perpetual inventory method Your procedures for accounts payable uncover the following (assume these events are material): You observe an invoice (for the purchases of inventory) for $50,000, dated December 30 and bearing terms of FOB shipping point. The goods arrived on December 30 . You know these goods were included in the physical inventory taken on December 31 since you observed the receiving report and related inventory when you were at the clients' site that day observing the counting of the physical inventory. The invoice was not received until January 6 and was entered as a January transaction, at which time Accounts payable was increased $50,000, The inventory account was adjusted to the value of the physical count (by debiting inventory and crediting cost of goods sold), and therefore, the inventory amount on the financial statements includes the $50,000. You think about the above facts?. What entry (assume no tax effect), if any, is needed to adjust the financial statements?: No entry is required Dr. Cost of Goods Sold $50,000 Cr Accounts Payable $50,000 O Dr. Inventory $50.000 Cr. Accounts Payable $50,000 Dr. Cost of Goods Sold $50.000 Cr Sales $50,000 Dr. Inventory $50,000 Cr. Cost of Goods Sold $50,000