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. Of the balance of $30,000, $1,500 is incorrect because on December 19 we returned the equipment when we found that we didnt need it. We ordered it in the middle of November when we had anticipated a need for it. When we received the equipment, we realized it was unnecessary and returned it unopened.

Follow-up: An analysis of the transaction revealed that it was received by your client prior to December 31, 2019 but they have not yet processed the credit.

3. 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.

4. 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.

5. 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 table (all empty boxes should have a value)

Confirmation #	Audited Value	Book Value	Difference
#1
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#5