Summary of identified misstatements (A5-1) Dr Salary Expense Dr. COGS "Assume all have been corrected by management $ 126,000.00 understated AP from search of unrecorded liabilities testing Cr. AP $ 126,000.00 $ 150,000.00 overstated inventory from valuation testing Cr. Inventory $ 150,000.00 Dr. AP $ 50,000.00 Cr. AR $ 50,000.00 reclassification of AR to AP Dr. AR Complete the following working paper Description Understatement of AP Overstatement of Inventory $ 100,000.00 Did not record accrued revenue Cr. Revenue $ 100,000.00 Amount of over (under) misstatements in the fansBest Circumstances of Occurrence Assets Liabilities Pre-tax Income Equity Financial Statement Corrected? Yes/No WP Ref Disclosures 126,000 -126,000 Yes Yes Yes Yes Total identified misstatements during aud Misstatements corrected by managerat Total uncorrected misstatements Effect of uncorrected misstatements on income taxes Effect of uncorrected misstatements from prior periods Uncorrected misstatements to be carried forward i (All) 0