Inventory at December 31, 2021 was understated by P 15,000. What would be the adjusting entry if the error was discovered at December 31, 2022?a. Debit - Inventory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000.b. Debit - Retained Earnings, P 15,000; Credit - Inventory, January 1, 2022, P 15,000.c. Debit - Inventory, January 1, 2022, P 15,000; Credit - Retained Earnings, P 15,000.d. No adjusting entry is necessary Question 422 ptsInventory at December 31, 2021 was understated by P 15,000. What would be theadjusting entry if the error was discovered at December 31, 2022?O Debit - Inventory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000.O Debit - Retained Earnings, P 15,000; Credit - Inventory, January 1, 2022, P 15,000.Debit - Inventory, January 1, 2022, P 15,000; Credit - Retained Earnings, P 15,000.O No adjusting entry is necessary

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Description: Inventory at December 31, 2021 was understated by P 15,000. What would be the adjusting entry if the error was discovered at December 31, 2022?a. Debit - Inventory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000.b. Debit - Retained Earni

The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending…

Business

Accounting

tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P 15,000; Credit - Inventory, January 1, 2022, P 15,000. c. Debit - Inventory, January 1, 2022, P 15,000;

tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P 15,000; Credit - Inventory, January 1, 2022, P 15,000. c. Debit - Inventory, January 1, 2022, P 15,000;

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PB: Assuming a companys year-end inventory were understated by $16,000, indicate the effect...

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