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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.

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anthougo

The financial statements to correct with regard to the two missing $400 HD televisions are the Income Statement and the Balance Sheet.

  • The accounts affected are Ending Inventory and Cost of Goods Sold on the expenses side and the Retained Earnings account on the revenue side.

  • The costs of the two missing HD televisions will reduce the Ending Inventory by $800 ($400 x 2), thereby increasing the Cost of Goods Sold for the period by $800.

  • The necessary adjustments will also reduce the Retained Earnings by $800.

Thus, finding that two $400 HD televisions were missing would definitely affect the two financial statements.

Read more about the effects of missing inventory on the financial statements at https://brainly.com/question/17112049

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