Confirmation replies:

1. The balance of $120,000 is incorrect because we paid that amount in full on December 24, 2019. Follow-up: An analysis of the cash receipts journal revealed that the check had been received in the mail on December 29^th and deposited but applied to a different customer account.

2. The balance of $214,400 is correct, and we paid it on January 5, 2020. Follow-up: An analysis of the cash receipts journal revealed that the check had been received on January 10, 2020.

3. Of the balance of $130,000, $10,000 is incorrect because it represents goods that we didnt receive until January 5, 2020. Follow-up: Inspection of shipping records reveals that the item was shipped on December 31, 2019 fob shipping point.

4. Of the accounts $18,000 balance, we only owe $17,460 and the $540 (3% of the total) remains unpaid because the Keystone salesperson told us that she would be able to obtain a special discount beyond the normal. Follow-up: While inspection of the sales agreement indicated no such discount arrangement, discussions with Carter Addison (controller) and Joshua Caleb (president) indicated that the salesperson had inappropriately granted such a discount to the client. On January 15, 2020, they processed the discount and credited the account for $540.

Fill out the remaining of the table (I just need help with the first one but left the others as an example)

Confirmation #	Book Value	Audited Value	Difference
#1
#2	214,000	214,000	0
#3	130,000	120,000	10,000
#4	18,000	17,460	540