In the Year 2016,the Internal Auditors of Goofy Co

question 90

Essay

In the year 2016,the internal auditors of Goofy Co.discovered that goods costing $25 million that were purchased in December of 2015 were recorded for $20 million.The goods were properly measured in the December 31,2015,ending physical inventory.
Required:
Prepare the journal entry needed in 2016 to correct the error.Also,briefly describe any other measures Goofy would take in connection with correcting the error.(Ignore income taxes. )

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Definitions:

Personality Disorders

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Adolescence

The phase of growth involving both physical and mental changes, usually happening between the onset of puberty and reaching the age of majority.

Early Adulthood

A life stage that follows adolescence, typically ranging from about 20 to 40 years of age, marked by increased independence and responsibility.

Autism Spectrum Disorder

A developmental disorder affecting communication and behavior, encompassing a broad range of conditions characterized by challenges with social skills.