In 2018, the internal auditors of Development Technologies,
Inc., discovered that (a) 2017 accrued wages of $1.1 million were
not recognized until they were paid in 2018, and (b) a $2.1 million
purchase of merchandise in 2018, was recorded as a debit to
Purchases in 2017 instead. The physical inventory count at the end
of 2017 was correct.
Ignoring income taxes, prepare the journal entries to correct each error in 2018.
|Accounts titles and Explanation||Debit ($)||Credit ($)|
|in million||in million|
|Accrued wages/wages payable||1.10|
|( To record the correct error in wages)|
|( To record the correct error in merchandise inventory)|
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