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In 2013, the internal auditors of Development Technologies, Inc., discovered that
(a) 2012 accrued wages of $2 million were not recognized until they were paid in 2013 and
(b) A $3 million purchase of merchandise in 2013 was recorded in 2012 instead. The physical inventory count at the end of 2012 was correct. Ignoring income taxes, what journal entries are needed in 2013 to correct each error? Also, briefly describe any other measures Development Technologies would take in connection with correcting the errors.
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