answers or completions. Select the on tHal Bu completes the statement. PRINT THE LETTER OF THE CORRECT ANSWER IN THE SPACE AT THE RIGHT Questions 1-3 DIRECTIONS: The following information applies to Questions 1 through 3 During your audit of the Avon Company, you find the following errors in the records of the company 1. Incorrect exclusion from the final inventory of items costing $3,000 for which the purchase was not recorded. Inclusion in the final inventory of goods costing $5,000, although a purchase was not recorded. The goods in question were being held on consignment from Re1drey Company. 2. Incorrect exclusion of $2,000 from the inventory count at th end of the period. The goods were in transit (F.O.B. shipping point); the invoice had been received and the purchase recorded. Inclusion of items on the receiving dock that were being held for return to the ven- dor because of damage. In counting the goods in the receiving department, these items were incorrectly included. With respect to these goods, a purchase of $4,000 had been recorded. 4. The records (uncorrected) showed the following amounts: 1. 2. 3. 4. Purchases, $170,000 Pretax income, $15,000 Accounts payable, $20,000; and Inventory at the end of the period, $40,000. 1. The corrected inventory is B. $42,000 The corrected income for the year is B. $15,000 A. $36,000 C. $43,000 D. $44,000 2. 2. A. $12,000 C. $17,000 D. $18,000 3. The correct accounts payable liabilities are 3. A. $16,000 B. $17,000 C. $19,000 D. $23,000