In the year 2009, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2008 were in transit on 12/31/08. The goods were recorded as a purchase in December of 2008 but were not included in the 2008 year-end inventory.
Required:
Prepare the journal entry needed in 2009 to correct the error. Also, briefly describe any other measures Blooper would take in connection with correcting the error. (Ignore income taxes.)
Analysis:

Question

Quizplus · Accepted Answer

The Answer of In the year 2009, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2008 were in transit on 12/31/08. The goods were recorded as a purchase in December of 2008 but were not included in the 2008 year-end inventory.
Required:
Prepare the journal entry needed in 2009 to correct the error. Also, briefly describe any other measures Blooper would take in connection with correcting the error. (Ignore income taxes.)
Analysis:

In the Year 2009, the Internal Auditors of Blooper Inc