Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how to get this answer Questions 1-3. records of the DIRECTIONS: The following information app ing information applies to Questions 1 through 3. following errors

image text in transcribed
how to get this answer
Questions 1-3. records of the DIRECTIONS: The following information app ing information applies to Questions 1 through 3. following errors in the records During your audit of the Avon Company, you for which the company: Fovo a purchase was Incorrect exclusion from the final inventory of items costing $3,000 for which purchase was not recorded. Inclusion in the final inventory of goods costing $5,000, although a purchas not recorded. The goods in question were being held on consignment from the period. The 3. Reldrey Company. Incorrect exclusion of correct exclusion of $2.000 from the inventory count at the end of the period goods were in transit (FO.B. shipping point); the invoice rau voor received and the purchase recorded. Inclusion of items on the receiving dock that were being held for return to the dor because of damage. In counting the goods in the receiving department, the items were incorrectly included. With respect to these goods, a purchase of $4.00 had been recorded. The records (uncorrected) showed the following amounts: 1. Purchases, $170,000 2. Pretax income, $15,000 3. Accounts payable, $20,000; and 4. Inventory at the end of the period, $40,000. D. $44,000 1. The corrected inventory is A. $36,000 B. $42,000 C. $43,000 2. The corrected income for the year is A. $12,000 B. $15,000 C. $17,000 3. The correct accounts payable liabilities are A. $16,000 B. $17,000 C. $19,000 4. An auditing procedure that is most likely to real D. $18,000 D. $23,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GAO Financial Audit Manual Volume 2 Updated March 2021

Authors: United States Government GAO

2021 Edition

B091WM9DZW, 979-8733082875

More Books

Students also viewed these Accounting questions