Final Answer:
The correcting journal entry required at December 31, 2016, for the materials received on December 30, 2016, is as follows:
1. Inventory (Asset) - $19,800
Accounts Payable (Liability) - $19,800
Step-by-step explanation:
When materials were received on December 30, 2016, without an initial entry due to the specified delivery date set for no earlier than January 10, 2017, a correcting journal entry is necessary to reflect this transaction in the correct accounting period, which ends on December 31, 2016.
The entry involves debiting the Inventory account by $19,800, recognizing the value of materials received and added to the company's inventory as of December 31, 2016. Simultaneously, the Accounts Payable account is credited by $19,800, acknowledging the liability for these materials that the company owes but hasn't yet paid for as of the year-end.
This adjustment ensures that the financial records accurately capture the materials received before the end of the accounting period, reflecting both the increase in inventory assets and the corresponding increase in the payable amount owed for these materials. It aligns the financial statements with the economic reality of the transactions occurring within the specified period.