In 2018, the internal auditors of Development Technologies, Inc., discovered that (a) 2017 accrued wages of$2 million were not recognized until they were paid in 2018, and (b) a $3 million purchase of merchandisein 2018 was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Ignoringincome taxes, what journal entries are needed in 2018 to correct each error? Also, briefly describe any othermeasures Development Technologies would take in connection with correcting the errors
In 2018, the internal auditors of Development Technologies, Inc., discovered that (a) 2017 accrued wages of$2 million were not recognized until they were paid in 2018, and (b) a $3 million purchase of merchandisein 2018 was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Ignoringincome taxes, what journal entries are needed in 2018 to correct each error? Also, briefly describe any othermeasures Development Technologies would take in connection with correcting the errors
Chapter10: Inventory
Section: Chapter Questions
Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...
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In 2018, the internal auditors of Development Technologies, Inc., discovered that (a) 2017 accrued wages of
$2 million were not recognized until they were paid in 2018, and (b) a $3 million purchase of merchandise
in 2018 was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Ignoring
income taxes, what
measures Development Technologies would take in connection with correcting the errors
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