Inventory Adjustment and Vacation Accrual

Inventory Adjustment in 2009
Inventory adjustments should have been made in 2009. The adjustment was necessary to ensure that inventory was not overvalued. According to the basic accounting principles, an entity is not supposed to overvalue its inventory and other items in the financial statements. Adjustments are also necessary to bring the stock records into agreement with the findings of the actual or physical inventory. Inventory adjustments impact the stock ledger as the inventory value and it makes the stock value to be decreased (Sarkar 3). Without the adjustments being…..

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