The records of Pelletier Inc. show the following data for the years ended July 31: Income statement: Sales Cost of goods sold Operating expenses Statement of financial position: Inventory 2018 2017 2016 $320,000 $312,000 $300,000 187,000 203,000 170,000 52,000 52,000 50,000 37,000 24,000 37,000 After the company's July 31, 2018, year-end, the controller discovers two errors: 1. Ending inventory at the end of 2016 was actually $27,000, not $37,000. Pelletier included goods held on consignment for another company that were mistakenly included in the 2016 inventory account. As a result, the company's inventory count showed the company having more inventory than its accounting records indicated it should have. The company adjusted
The records of Pelletier Inc. show the following data for the years ended July 31: Income statement: Sales Cost of goods sold Operating expenses Statement of financial position: Inventory 2018 2017 2016 $320,000 $312,000 $300,000 187,000 203,000 170,000 52,000 52,000 50,000 37,000 24,000 37,000 After the company's July 31, 2018, year-end, the controller discovers two errors: 1. Ending inventory at the end of 2016 was actually $27,000, not $37,000. Pelletier included goods held on consignment for another company that were mistakenly included in the 2016 inventory account. As a result, the company's inventory count showed the company having more inventory than its accounting records indicated it should have. The company adjusted
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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