Example 1 Alison's draft financial statements show a net profit for the year of $52,380. Subsequently, the following errors come to light (a) No entry has been made for $563 cash received from Adele, a customer whose debt was written off last year as irrecoverable Closing inventory valued in the draft accounts at its cost of $8,920, was believed to have a potential sales value of $7,930 Goods which had cost $2,000 had been sent to a customer just before the year end on a sale or return basis. These had been accounted for as a firm sale, with a profit of 20% of cost. No confirmation of the sale had been received from the customer. (b) (c) A payment for rent charged in full to the current year included $490 which relates to the next accounting period. No adjustment had been made for this when preparing the draft accounts (d) Prepare a statement of adjustments to profit in order to calculate the correct net profit for the year