A1:The bank statement indicates that a check you recorded for $600 for a payment to your vendor cleared the bank for $6,000.You made the mistake of recording the check erroneously and the bank was correct.

A2:The balance in Allowance for Doubtful Accounts is $15,000 on the unadjusted trial balance.An aging of accounts receivable analysis indicates that the balance in the Allowance account should be $17,500.

A3:Analysis of the replacement cost for inventory indicates a decline of $17,000 which you consider to be material.The company uses the FIFO method of accounting for inventory.

A4:You analyze the securities held in the Marketable Securities account at year end by looking up the closing price on Yahoo Finance for each security and multiplying by the number of shares held.The result of your analysis indicates that the portfolio declined $7,000 in value as of the year end.