In Exercise 1.1, you were asked to obtain the most recent annual report of a company that you were interested in reviewing throughout this term.

Data from in Exercise 1.1

The balance in Happ Inc.’s general ledger Cash account was $16,200 at August 31, before reconciliation. The August 31 balance shown in the bank statement was $14,900. Reconciling items included deposits in transit, $2,100; bank service charges, $100; NSF check written by a customer and returned with the bank statement, $650; outstanding checks, $1,500; and interest credited to the account during September but not recorded on the company’s books, $50.

Required:
Review the note disclosures provided in your focus company’s annual report and discuss what you’ve learned about how your company’s accounts receivable and inventory are accounted for and presented.