During 2013 WMC Corporation discovered that its ending inven

During 2013, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts:

Prepare a journal entry to correct the error made in 2012.

During 2013, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts:

Answer :- Journal entry (for correction of error made in Year 2012)

Retained earnings A/c Dr.

To inventory A/c

150000

General journal

Debit ($)

Credit ($)

Retained earnings A/c Dr.

To inventory A/c

150000