Lindy Company’s auditor discovered two errors. No errors wer…
Lindy Company’s auditor discovered two errors. No errors were corrected during 2023. The errors are described as follows: 1. Merchandise costing $4,800 was sold to a customer for $9,800 on December 31, 2023, but it was recorded as a sale on January 2, 2024. The merchandise was properly excluded from the 2023 inventory. Assume the periodic inventory system is used. 2. A machine with a five-year life was purchased on January 1, 2023. The machine cost $28,000 and has no expected salvage value. No depreciation was taken in 2023 or 2024. Assume the straight-line method for depreciation. The appropriate journal entries (assume the 2024 books have not been closed). Ignore income taxes.
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