I want to understand where the 18514 answer comes from.

Sales:

Balance Forward

Date Reference Amount Date Reference Amount

12/31 Closing Entry $776, 809 731,120

12-27 SI 965 7,085

12-28 SI 966 18,365

12-28 SI 967 1,725

12/31 SI 969 7,658

12/31 SI 970 8,721

12/31 SI 971 2,135

$776,809 731,120

*SI = Sales Invoice

Purchases:

Balance Forward

Date Reference Amount Date Reference Amount

$331,500 12-31 Closing Entry $355,205

12-28 RR1059 2,900

12-30 RR1061 8,615

12-31 RR1062 3,920

12-31 RR1063 8,270

$355,205 $355,205

RR = Receiving Report

You observed the physical inventory of goods in the warehouse on December31, 2016, and were satisfied that it was properly taken. When performing a sales and purchases cutofftest, you found that at December31, 2016, the last receiving report that had been used was no. 1063 and that no shipments have been made on any sales invoices with numbers larger than no. 968. You also obtained the following additionalinformation:

Included in the warehouse physical inventory at December31, 2016, were chemicals that had been acquired and received on receiving report no. 1060 but for which an invoice was not received until the year 2017. Cost was $2,098.

In the warehouse at December31, 2016, were goods that had been sold and paid for by the customer but which were not shipped out until the year 2017.

They were all sold on sales invoice no. 965 and were not inventoried.

On the evening of December31, 2016, there were two cars on the Upper Q companysiding:

(a) Car AR38162 was unloaded on January2, 2017, and received on receiving report no. 1063. The freight was paid by the vendor.

(b) Car BAE74123 was loaded and sealed on December31, 2016, and was switched off thecompany's siding on January2, 2017.

The sales price was $13,700 and the freight was paid by the customer. This order was sold on sales invoice no. 968.

Temporarily stranded at December31, 2016, on a railroad siding were two cars of chemicals en route to the Z Pulp and Paper Co. They were sold on sales invoice no.966, and the terms were FOB destination.

Enroute to the Upper Q Company on December31, 2016,was a truckload of material that was received on receiving report no. 1064. The material was shipped FOBdestination, and freight of $100 was paid by the Upper Q Company. However, the freight was deducted from the purchase price of $1,825.

Included in the physical inventory were chemicals exposed to rain during transit and deemed unsalable. Their invoice cost was 1,125, and freight charges of $300 had been paid on the chemicals. (Assume that the freight charges have not been included in theclient's inventory.)

Record any entry required to adjust the sales records for merchandise that was in the warehouse at time of physical count.

Dec 31 Sales 18514

Accounts Receivable 18514