Chat with us, powered by LiveChat Inventory ErrorsYou are the controller of a rapidl - BonPapers

Inventory ErrorsYou are the controller of a rapidl

Inventory ErrorsYou are the controller of a rapidly growing mass merchandiser. The company uses a periodicinventory system. As the company has grown and accounting systems have developed, errorshave occurred in both the physical count of inventory and the valuation of inventory on the balancesheet. You have been able to identify the following errors as of December 2008: In 2006, one section of the warehouse was counted twice. The error resulted in inventory overstatedon December 31, 2006, by approximately $45,600. In 2007, the replacement cost of some inventory was less than the FIFO value used on thebalance sheet. The inventory would have been $6,000 less on the balance sheet datedDecember 31, 2007. In 2008, the company used the gross profit method to estimate inventory for its quarterlyfinancial statements. At the end of the second quarter, the controller made a math error andunderstated the inventory by $20,000 on the quarterly report. The error was not discovereduntil the end of the year.RequiredWhat, if anything, should you do to correct each of these errors? Explain your answers.

Order an Excellent Paper with Bonpapers.com Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?