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madam [21]
3 years ago
8

In 2018, the internal auditors of Development Technologies, Inc., discovered that a $5.9 million purchase of merchandise in 2018

was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Assume the company uses a periodic inventory system.Required:Prepare the journal entry needed in 2018 to correct the error. (Ignore income taxes.) (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)No Event General Journal Debit Credit1 1 Miscellaneous expense 5.9 1 No journal entry required5.9Please note the journal entries are not retained earnings or inventory, the system says it is wrong. Thanks.
Business
1 answer:
Alenkinab [10]3 years ago
7 0

Answer:

Explanation:

The journal entry is shown below:

Purchase A/c Dr $5.9 million

     To Retained earning A/c $5.9 million

(Being the error is corrected and it credited to the retained earning account)

For correction of an error, we debited the purchase account and credited the retained earning account for $5.9 million so that the correct posting can be done.

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vichka [17]

Answer:

correct answer is C. Shrinkage

Explanation:

Shrinkage is industry term for an inventory and the cash losses

because shrinkage is difference between the record inventory and actual inventory so that shrinkage is the loss of an inventory and some factor that is attribute like vendor is fraud , employee theft or cashier errors or could be administrative error etc

so here correct option is  C. Shrinkage

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3 years ago
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Makovka662 [10]

Answer:

the prior year's amount

Explanation:

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This will give an idea of how much increase has occurred on previous performance.

So it is calculated by deducting previous year amount from current year amount, then divide by the previous year amount and multiply by 100

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Synopsis:
Tpy6a [65]

Explanation:

This is a complex issue that may reflect on the organizational culture of that company. As a leader, it is necessary to understand the situation and listen to both parties in order to find a favorable solution for the company and the employees. Since Marshall's work is important to the company, firing him at first may not be a favorable decision, what the leader can do is provide feedback to him about his interpersonal relationship at the company.

As an effective leader, it is necessary to constantly monitor the work and the relationship between employees, in which case it is necessary to understand the reason for Marshall's behavior and try to change the parameters and procedures that may be facilitating this behavior. It is necessary for him to understand that despite being an effective worker, the company is an integrated system that must be in perfect synchronicity for it to be successful in the market.

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