During the course of the Year 3 audit of a Company, the auditor discovered potential cutoff and valuation problems that may or may not require adjusting journal entries. The company uses a perpetual inventory accounting system. For each of the potential cutoff and valuation problems indicated below, complete the required journal entries.

To prepare each required journal entry:

? List the appropriate Account Name An account may be used once, more than once, or not at all.

a) Cash,

b) Inventory,

c) Sales,

d) Accounts Receivable,

e) Cost of Goods Sold

f) Net Income

? Enter the corresponding debit or credit amount in the associated column.

? Round all amounts to the nearest whole number.

? Not all rows in the table might be needed to complete each journal entry.

? If no journal entry is needed, type "No entry required" in box

1. The company shipped merchandise valued at $100,000 F.O.B. destination on December 28, Year 3, and recorded the sale and relief of inventory on that date. The customer received the merchandise on January 4, Year 4. The merchandise has a profit margin of 20%. Record the necessary Year 3 adjustments, if any.