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You are an accountant of GSM company ltd., a clothing store. After you have prepared the financial statements as at December 2011, you noticed the

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You are an accountant of GSM company ltd., a clothing store. After you have prepared the financial statements as at December 2011, you noticed the following items occurring before accounts are approved by the directors: The sale of Tshs.1,000,000 was made during the period from 31st December 2011 to the date the statements are approved by the directors. The purchase of Tshs.750,800 was done during the period from 31st December 2011 to the date the statements are approved by the directors. Expenses amounting to Tshs.180,000 was incurred during the period from 31st December 2011 to the date the statements are approved by the directors. A notification d h acustomer who owes the company Tss.3,700,000 has been declared bankrupt on 17h January 2012 A fire on 4th January 2012 destroys all the inventories in the warehouse. A letter is received from the insurance company stating that it is unclear whether our company was actually insured for the loss of inventories in the warehouse Which of the above items are relevant for adjusting and non-adjusting events? 21 of 22

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