Cut-off Testing In addition to confirming accounts receivable, you are also concerned about the cut-off assertion for cash, accounts receivable, revenue, cost of sales and accounts payable at SG as of year-end 12/31/2018. Accounts receivable relates to delivery of food to customers. All sales to customers are on credit. SG invoices its customers at the time of delivery and receives cash payments from customers in about 30 days Delivery schedule obtained from the Production Department Employee in- LocationCustomer Vendot/Supplier Receipt amount charge of Date billing from Vendor December 30, 2018 December 30, 2018 December 31, 2018 Susan Wal 12,000 9,000 11,000 Restaurant A Restaurant IB Restaurant A Restaurant B Pa Best Corp 6,000 9,000 8,000 10,000 Trevor Mn CPA December 31, 2018 Pa TC University January 2 2019 Trevor/Pa Pa IMA 14,000 RestaurantA Restaurant C Restaurant B January 2, 2019 lanuary 3,2019 Susan/Pa Deposit tickets (which match the bank statements) reveal that actual cash receipts from customers for this time period were Total receipts from customers for the day-deposit record December 30, 2018 December 31, 2018 anuary 3, 2019 General Ledger 12/31/2018 11,000 6,000 Cash Accounts payable 30-Dec 30-Dec 24,000 12,00 30-Dec 12,000 15,000 31-Dec 31-Dec 8,0002,0031-Dc 2000 ,000 11,000 Cost of Sales Accounts Receivable 30-Dec 15,000 31-Dec 10,000 30-Dec 12,00024,000 31-Dec 11,0008000 Using the information provided with the delivery schedule and the deposit tickets, determine if there are problems with the recognition of revenue for SG Catering. The general ledger is provided in T-Account form. 29) 1s there a cut-off error in revenue? If so, please indicate the amount. 50) Is there a cut-off ernor in expense? If so, please indicate the amount. 31) Is thene a cut-off erzot in cash receipes? If so, please indicate the amount 32) What is the effect (amount), if any, of erroro)s on 2018 operating income? Confirmations tive audit tests is the confirmation of accounts receivable at SG Catering. You are concerned about the assertions of existence and valuation. Assume that you send out your confirmations as of December 31, 2018. Most of the confirmations returned indicated "no exception". In other words, the customer confirmed the balance listed by SG Catering is correct. However, Cut-off Testing In addition to confirming accounts receivable, you are also concerned about the cut-off assertion for cash, accounts receivable, revenue, cost of sales and accounts payable at SG as of year-end 12/31/2018. Accounts receivable relates to delivery of food to customers. All sales to customers are on credit. SG invoices its customers at the time of delivery and receives cash payments from customers in about 30 days Delivery schedule obtained from the Production Department Employee in- LocationCustomer Vendot/Supplier Receipt amount charge of Date billing from Vendor December 30, 2018 December 30, 2018 December 31, 2018 Susan Wal 12,000 9,000 11,000 Restaurant A Restaurant IB Restaurant A Restaurant B Pa Best Corp 6,000 9,000 8,000 10,000 Trevor Mn CPA December 31, 2018 Pa TC University January 2 2019 Trevor/Pa Pa IMA 14,000 RestaurantA Restaurant C Restaurant B January 2, 2019 lanuary 3,2019 Susan/Pa Deposit tickets (which match the bank statements) reveal that actual cash receipts from customers for this time period were Total receipts from customers for the day-deposit record December 30, 2018 December 31, 2018 anuary 3, 2019 General Ledger 12/31/2018 11,000 6,000 Cash Accounts payable 30-Dec 30-Dec 24,000 12,00 30-Dec 12,000 15,000 31-Dec 31-Dec 8,0002,0031-Dc 2000 ,000 11,000 Cost of Sales Accounts Receivable 30-Dec 15,000 31-Dec 10,000 30-Dec 12,00024,000 31-Dec 11,0008000 Using the information provided with the delivery schedule and the deposit tickets, determine if there are problems with the recognition of revenue for SG Catering. The general ledger is provided in T-Account form. 29) 1s there a cut-off error in revenue? If so, please indicate the amount. 50) Is there a cut-off ernor in expense? If so, please indicate the amount. 31) Is thene a cut-off erzot in cash receipes? If so, please indicate the amount 32) What is the effect (amount), if any, of erroro)s on 2018 operating income? Confirmations tive audit tests is the confirmation of accounts receivable at SG Catering. You are concerned about the assertions of existence and valuation. Assume that you send out your confirmations as of December 31, 2018. Most of the confirmations returned indicated "no exception". In other words, the customer confirmed the balance listed by SG Catering is correct. However