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In 2024, the controller of Sytec Corporation discovered that $46,000 of inventory purchases were incorrectly...

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Accounting

In 2024, the controller of Sytec Corporation discovered that $46,000 of inventory purchases were incorrectly charged to advertising expense in 2023. In addition, the 2023 year-end inventory count failed to include $32,000 of company'merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material.
Required:
Determine the effect of the errors on retained earnings at January 1,2024.(Ignore income taxes.)
Prepare a journal entry to correct the errors.
Complete this question by entering your answers in the tabs below.
Requirech
Required 2
Determine the effect of the errors on retained earnings at January 1,2024.(Ignore income taxes.)
Retained earnings would be
understated
by
$,78,000
image

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