Faubert Company began operations on January 1, Year 1. The company has drafted its Year 5

comparative financial statements. Adjusting Journal Entries have been recorded; the Year 5 books are still open. Faubert will be audited for the first time. Auditors have discovered the following possible errors:

The physical inventory count on December 31, Year 4, improperly excluded merchandise

costing $5,000 that had been temporarily stored in a public warehouse. Faubert uses a periodic.

inventory system.

Required

Correcting JE, if applicable. If not indicate "No CJE"