1. In the Chateau Americana case, you discovered an error related to Vintage Wine and recorded the result in form R-520 as below.

Complete the adjusting entry schedule below by making an adjusting entry to correct the Vintage Wine error.

Group of answer choices

a. dr. AR 17,258 ; cr. Sales 17,258

b. dr. AR 5,880 ; cr. Sales 5,880

c. dr. AR 5,880 ; cr. Allowance for Bad Debts 5,880

d. dr. AP 5,880 ; cr. Sales Return 5,880

e. dr. Sales 5,880 ; cr. AR 5,880

2. You have completed the adjusting entries in form R210 in the Chateau Americana case.

Based on the adjusting entries you entered in R-210, you need to compute the correct ending balances for the accounts related to the errors. Here is the partially completed R-200.

1. What is the correct entry for (1) Adjustments to Net Sales?

Group of answer choices

a. Credit 6,300

b. Debit 5,880

c. Debit 6,300

d. Credit 18,948

e. Debit 18,948

f. Debit 5,460

g. Credit 5,460

h. Credit 5,880

2. What is the correct amount for (2) Adjusted Balance for Net Sales?

Group of answer choices

a. 21,939,962

b. 21,951,302

c. 21,951,722

d. 21,939,122

e. 21,939,542

One cutoff misstatement was identified. Wine sold at $5,880 was returned during the 20XX reporting period but not recorded as a sales return until the 20XY reporting period (see credit memo 2896). The total dollar value of returned wine around year-end is negilible in relation to total sales and accounts receivable therefore the results of substantive audit tests for accounts receivable continue to support a moderate inherent risk and control risk assessment for the valuation of sales and accounts receivable. The magnitude of the allowance for sampling risk for accounts receivable is sufficient to support the conclusion that accounts receivable as of December 31, 20xX is fairly stated in all material respects. No additional audit procedures are required. The results of audit tests performed related to revenue cycle accounts support the conclusion that accounts receivable, allowance for bad debts, net sales, and bad debt expense as of and for the year ended December 31, 20XX are fairly stated in all material respects