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.)

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Definitions:

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Aggressive Sales

Sales strategies that are assertive and can sometimes be perceived as pushy, focusing on closing deals quickly and maximizing profits.

Frequent Perpetrators

Individuals or entities that consistently engage in harmful or criminal activities regularly.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.