Assume that a $500 purchase invoice received close to year-end is not recorded in fiscal 2019, but the inventory is appropriately included in the ending inventory count. What impact will this have on fiscal 2020 financial reporting?

Question

Quizplus · Accepted Answer

Since the inventory has already been appropriately included in the ending inventory count, there will be no effect on the gross margin. Also, operating expenses and operating profit will not be impacted as the purchase invoice was not recorded in fiscal 2019.

Assume That a $500 Purchase Invoice Received Close to Year-End