Western Company normally makes the journal entry for a purchase of inventory and recognition of the payable on receipt o

[answerhappygod]

Western Company normally makes the journal entry for a purchaseof inventory and recognition of the payable on receipt of a vendorinvoice. On December 31 (year end) it receives an invoice for$1,000 from Far East Ltd. and records the purchase. However, theincoming shipment is actually still in transit (in mid Pacific) atyear end and the sales terms were FOB Shipping Point. Western takesa physical count of inventory at the end of year as standardprocedure. Which of the following is/are true statements?
Multiple Choice
All represent correct statements
should reverse the purchase entry to correct the error
All represent incorrect statements
must catch the error when it compares the count to the records(the book to physical adjustment)
does not legally own the goods on December 31