Required:

1. Sales cut-off working paper
2. Purchases cut-off working paper
3. Adjusting entries as of Dec. 31, 2019 to update the books

PROBLEM 3-3 In connection with your examination of the inventory cut-off of the RED ROSE COMPANY as of Dec. 31, 2019, you noted the items listed below. The company maintains a perpetual control account in the general ledger, and this account has already been adjusted for the inventory discrepancy disclosed by the physical inventory without giving consideration to the information shown below: Sales Dr. Cost of Sales Cut-off Goods Dr. Receivables Shipped Cr. Sales Cr. Inventory 1 1-2 P280,000 1-2 P240,000 12-29 2 12-31 200,000 1-2 120,000 12-31 3 12-31 28,000 1-3 12-31 40,000 Purchases* Receiving Entry in the Invoice Cut-off Date Memo Date Voucher Register 12-31 P40,000 4 12-30 1-3 12-30 1-4 80,000 12-29 6 1-5 1-5 180.060 1-2 * All goods were purchased FOB destination. REQUIRED: 1. Prepare a sales cut-off working paper for the above. 2. Prepare a purchases cut-off working paper for the above. 3. Adjusting entries as of Dec. 31, 2019 to update the books