In 2018, the Internal Auditors of Blooper Inc

question 132

Essay

In 2018, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2017 were in transit on December 31. The goods were recorded as a purchase in December of 2017 but were not included in the 2017 year-end inventory.
Required:
Prepare the journal entry needed in 2018 to correct the error. Also, briefly describe any other measures Blooper would take in connection with correcting the error. (Ignore income taxes.)

---

Definitions:

Morphemes

The smallest grammatical units in a language that convey meaning.

Phonemes

The most minimal sound units in a language capable of distinguishing words from each other.

Pragmatics

The branch of linguistics that studies how context influences the interpretation of meaning in communication.

Communicating

The process of conveying information or expressing thoughts and feelings from one entity or group to another through the use of mutually understood signs, symbols, or behavior.