Best Computers Ltd. is a computer retailer that purchases computer from the wholesaler and resale it to their customers.
John recently accepted a position at Best Computers Ltd. as an Accountant, and upon review of the current month’s invoices, John noticed that the inventory purchase are debited to the Operating Expense account. When John asked his manager about these invoices, he says you don’t need to worry about it because it won’t have any impact on net income.
Does the classification of the invoice matter? Explain in full sentences