In the year 2009, the internal auditors of Goofy Co. discovered that goods costing $25 million that were purchased in December of 2008 were recorded for $20 million. The goods were properly measured in the 12/31/08 ending physical inventory.
Required:
Prepare the journal entry needed in 2009 to correct the error. Also, briefly describe any other measures Goofy would take in connection with correcting the error. (Ignore income taxes.)

Question

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The Answer of In the year 2009, the internal auditors of Goofy Co. discovered that goods costing $25 million that were purchased in December of 2008 were recorded for $20 million. The goods were properly measured in the 12/31/08 ending physical inventory.
Required:
Prepare the journal entry needed in 2009 to correct the error. Also, briefly describe any other measures Goofy would take in connection with correcting the error. (Ignore income taxes.)

In the Year 2009, the Internal Auditors of Goofy Co