ABC Company closed the sales journal (ONLY THE SALES JOURNAL) after 12/30/2018. 12/31/18 transactions were recorded in January 2019 records. The company uses periodic inventory system.

What effect would this have on the 2018 financial statements?

Complete the schedule below:

A/R

Sales

Net Income

Effects of an Improper Cutoff - Assume that the client made the following actual credit sales and received cash receipts as follows after 12/29/18 : - Assume the following balances at 12/29/18: Cash $50,000 Accounts Receivable $45,000 Sales $55,000 Inventory $25,000 - Determine the overstatements and understatements that would result from the following situation. ABC Company closed the sales journal (ONLY THE SALES JOURNAL) after 12/30/2018. 12/31/18 transactions were recorded in January 2019 records. The company uses periodic inventory system. What effect would this have on the 2018 financial statements? Enter answers to #43 to #48 on Answer Sheet