Times New Roman ~ 10 ~ A A Wrap Text Accounting iste BIU~ ~ Merge & Center ~ $ ~ % 9 00 Condit Formatt Clipboard Font Alignment Number 23 X V fx B D E Description Selling Price Invoice Shipping Receiving Recording AR Dr(Cr) Sales Dr (CR) Inventory Dr {cr) COGS Dr(Cr) AP Dr(Cr) Sales: a 5000 12/28/x1 12/27/x1 12/28/x1 12/28/x1 $ 4,200.00 s (4,200.00) 6. 8000 12/28/x] 12/29/x1 12/30/x1 12/28/x1 S 5,600.00 S (5,600.00) C 5000 12/29/x1 1/3/12 A 1/5/x2 12/29/x1 10 00 d 5000 12/31/x1 1/3/x2 1/5/x2 12/31/x1 $(6,000.00) $6,000.00 e 7000 12/31/x1 1/2/12 1/3/x2 12/31/x1 $(7,000.00) $7,000.00 10 9000 12/31/x1 12/31/x1 D 1/3/12 12/31/x1 $(9,000.00) $9,000.00 $6,300.00 S(6,300.00) 11 4000 1/3/x2 1/4/x2 1/6/x2 1/3/x2 12 5000 1/3/12 12/31/x1 1/3/x2 1/3/12 $5,000.00 $(5,000.00) s 3,500.00 $ 3,500.00 13 5000 1/4/x2 1/5/12 In/x2 1/4/12 14 Purchases 15 5000 12/27/x1 12/27/1l 12/31/x1 12/27/x1 16 7000 12/28/x1 12/31/x1|D 1/3/x2 12/28/x1 S 17 (7,000.00) $7,000.00 8000 12/31/x1 12/31/x1 1/3/x2 12/31/x1 18 7000 12/31/x1 1/3/x2 1/4/x2 12/31/x1 $7,000.00 19 e 6000 1/3/12 12/30/x1 12/31/x1 (7,000.00) 1/3/12 S $(6,000.00) 20 9000 1/3/x2 12/30/x1 6,000.00 1/3/x2 1/3/x2 $9,000.00 $(9,000.00) 21 7000 1/4/X2 12/31/x1|D 1/3/x2 1/4/12 22 4000 12/30/x1 12/31/x1 1/3/x2 1/4/12 23 $4,000.00 $(4,000.00) To audit a company's sales and purchases cutoffs at the close of the fiscal year ended December 31, X1, you have compiled the data listed on the following schedule. All sales and purchases of significant amount from December 26, X1 to January 4, X2, inclusive, are included. The company realized a gross profit of 30% on each sale, and all sales and purchases were recorded as of the invoice dates. Items marked "D" were FOB destination; all other items were FOB shipping point. The physical inventory taken by the company included only those items actually on hand as of the close of business December 31, X1. All items on hand were included except a special machine (see "A" on the cutoff schedule). This special machine was made to order by the company's supplier for one of the company's customers and was in the shipping room ready for shipment. It was excluded from the physical inventory. The company maintains a perpetual inventory system. The inventory count and the subsidiary records have been adjusted to the physical inventory. 24 Complete the above schedule showing for each item the required adjustment, if any. Table 1 + Type here to search