If you found that two $400 hd televisions were missing, explain which financial statements you would correct and how. be specific as to accounts and amounts.
Question: If you found that two $400 hd televisions were missing, explain which financial statements you would correct and how. be specific as to accounts and amounts.
If two $400 HD televisions were missing, the financial statements that would need to be corrected are the balance sheet and income statement. The balance sheet would need to be adjusted to reflect a decrease in the inventory account by $800 (the cost of the two missing televisions). The income statement would also need to be adjusted to reflect the loss of the $800 worth of inventory through a decrease in the cost of goods sold account. Additionally, a loss account would need to be created to record the missing televisions as an expense, which would decrease net income by $800.
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