>> A shipment of inventory valued at $1,500 was shipped by a supplier on March 28, 2017, scheduled to arrive at PHL on March 30, 2017, but it arrived on April 3, 2017. It was delayed because it was shipped by truck and got caught in a snowstorm. The shipment was FOB shipping point. Joan re cords shipments based on the arrival date at the company's warehouse and therefore no entry had been made to include the inventory. Of course it was also not included in the physical count that took place on March 31, 2017, as it was not present for warehouse personnel to count- >> The company has not performed a detailed analysis of its allowance for doubtful accounts since the auditors were in last year; it was $5,600 at March 31, 2016 (before any accounts receivable were writ ten off during the 201617 scal year). Joan booked a preliminary estimate of $3,600 of bad debts for scal 201612, because she did not know how the amount recorded in 201516 was calculated. Joan knows that the auditors like to see an aged accounts receivable schedule on the rst day of their audit, so she has prepared one (Exhibit DI). >> Joan took a week off between March 24 and March 31, and the invoices for new ofce lmiture purchases that came in during that period totaled $15,000 and were recorded in inventory by her assistant. The ofce u'niture had arrived at PHL on March 1, 2017, and is expected to last 10 years. >> Joan and her assistant attended the inventory count at the main warehouse. Similar to March 31, 2016, the owner assured her that there was \"$50,000 of good inventory\" at Warehouse #2, a ware house in Brandon, Manitoba, that is rented from the owner (Jim's father) at a cost of $2,000 per month. Joan never veried the existence of the inventory, nor had she (or the auditors) even been to the warehouse. The cost of the goods purchased was \"paid for\" by the note payable that appears on the trial balance. The note is noninterest-bearing, so Jim says he is in no hurry to pay it. The $50,000 of inventory was originally purchased on December 31, 2014, according to Jim. >> PHL uses straight-line depreciation for all of its property, plant, and equipment other than vehicles (where double declining-balance depreciation is used). Aside from the items discussed above, there were no additions or disposals during the year. Property, plant, and equipment items are estimated to last for 10 years, and vehicles for ve years. Joan had not recorded any depreciation expense for the 201617 year before she quit. However, depreciation charges prior to 201612 have been audited and were done correctly