Use the Chart Provided Below to Determine the Impact If

question 66

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 15, 2020 but was still in transit at year end. The purchase invoice was received before year end and appropriately included in the purchases and accounts payable.
$$\begin{array} { | l | l | l | } \hline \text { Goods included in inventory count } & \\\hline \text { Purchases recorded during the year } &\\\hline & 2020 & 2021 \\\hline \text { Beginning inventory } & & \\\hline + \text { Purchases } & & \\\hline \text { -Ending inventory } & & \\\hline \text { =Cost of goods sold } & & \\\hline & & \\\hline \text {Operating expense } &\text{NA} &\text{NA} \\\hline \text { Net income } & &\\\hline & & \\\hline \text { Assets } & & \\\hline \text { Liabilities } & & \\\hline \text { Equity } & &\\\hline\end{array}$$

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Definitions:

Anxiety-Provoking Situations

Circumstances or events that induce a state of anxiety or stress, often used in psychological studies to understand coping mechanisms.

Systematic Desensitization

A behavioral therapy technique aimed at reducing phobic reactions through gradual exposure to the feared object or situation while practicing relaxation techniques.

Phobias

Intense, irrational fears of specific objects or situations.

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the frequency of the behavior.