IntermediateAccountingAccountingChangesandErrorCorrections幻灯片.pptVIP

The effects of the misstatement were as follows: Because this type of error counterbalances after two years, no correcting entry is required in 2011. Illustrative Example of Error Corrections (continues) The correcting entry in 2010 would have been as follows: Merchandise Inventory 1,000 Retained Earnings 1,000 The correcting entry is the same whether the company uses a periodic or a perpetual inventory system. Illustrative Example of Error Corrections It is discovered that purchase invoices of December 28, 2009, for $850 had not been recorded until 2010. The goods had been included in the