Use the Chart Provided Below to Determine the Impact If

question 76

Essay

Use the chart provided below to determine the impact if a company forgets to include $3,500 of inventory that was shipped FOB shipping point on December 25, 2020 but was still in transit at year end. The purchase invoice was processed in fiscal 2021.
$$\begin{array} { | l | l | l | } \hline \text { Goods included in inventory count } & \\\hline \text { Purchases recorded during the year } &\\\hline & 2020 & 2021 \\\hline \text { Beginning inventory } & & \\\hline + \text { Purchases } & & \\\hline \text { -Ending inventory } & & \\\hline \text { =Cost of goods sold } & & \\\hline & & \\\hline \text {Operating expense } & - &-\\\hline \text { Net income } & &\\\hline & & \\\hline \text { Assets } & & \\\hline \text { Liabilities } & & \\\hline \text { Equity } & &\\\hline\end{array}$$

---

Definitions:

Real-Time Data

Information that is delivered immediately after collection, with no delay in the timeliness of the information provided.

Process Optimization

The practice of making adjustments or improvements to a process to increase its efficiency, effectiveness, or both.

Information Technologies

Utilizing computers, storage mechanisms, communication networks, and other tangible tools, infrastructure, and methods for the production, processing, preservation, protection, and distribution of all types of electronic information.

Cost-Efficient Sharing

A strategy that aims to reduce costs through the shared use of resources, services, or infrastructure.