The physical inventory for Ajak Manufacturing was taken on December 30, 1996, rather than December 31, because the client had to operate the plant for a special order the last day of the year. At the time of the clients physical count, you observed that acquisitions represented by receiving report number 2631 and all preceding ones were included in the physical count, whereas inventory represented by succeeding numbers was excluded. On the evening of December 31, you stopped by the plant and noted that inventory represented by receiving report numbers 2632 through 2636 was received subsequent to the physical count, but prior to the end of the year. You later noted that the final inventory on the financial statements contained only those items included in the physical count. In testing accounts payable at December 31, 1996, you obtain a schedule from the client to aid you in testing the adequacy of the cutoff. The schedule below includes the information that you have not yet resolved.

Receiving Amount of Included in Purchases Information on the Vendors Invoice

Report Vendors and Accounts Invoice Shipping FOB Origin

Number Invoice Payable Date Date or Destination

2631 $2619 Included 12-30-96 12-30-96 Origin

2632 $3709 Excluded 12-26-96 12-15-96 Destination

2633 $5182 Included 12-31-96 12-26-96 Origin

2634 $6403 Excluded 12-16-96 12-27-96 Destination

2635 $8484 Included 12-28-96 12-31-96 Origin

2636 $5916 Excluded 1-3-97 12-31-96 Destination

2637 $7515 Included 1-5-97 12-26-96 Origin

2638 $2407 Included 12-31-96 1-3-97 Origin

Required

(1) For each of the receiving reports where a misstatement exists, prepare an adjusting entry to correct the financial statements.

Receiving Report Number

Adjusting Entry if needed. If no entry is needed, write N/A.

2631

2632

2633

2634

2635

2636

2637

2638