Confirmation replies:

1.) "The balance of $120,000 is incorrect because we paid that amount in full on December 31, 2016." Follow-up: An analysis of the cash receipts journal revealed that the check had been received in the mail on January 9, 2017.

2.) "Of the balance of $30,000, $330 is incorrect because on December 19 we returned a printer when we found that we didn't need it. We ordered it in the middle of November when we had anticipated a need for it. When we received the printer, 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, 2016 but they have not yet processed the credit.

3.) "The balance of $214,400 is correct, and we paid it on January 5, 2017." Follow-up: An analysis of the cash receipts journal revealed that the check had been received on January 10, 2017.

4.) "Of the balance of $130,000, $10,000 is incorrect because it represents goods that we didn't receive until January 5, 2017." Follow-up: Inspection of shipping records reveals that the item was shipped on January 3, 2017.

5.) "Of the account's $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 insoection 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, 2017, they processed the discount and credited the account for $540.

***COMPLETE THE FOLLOWING TABLE***

Conf #	Book Value	Audited Value	Difference
1
2
3
4
5