Recorded as sale credited to inventory control


A CPA is engaged in the annual audit of a client for the year ended December 31, 19X4. The client took a complete physical inventory under the CPA's observation on December 15 and adjusted its inventory control account and detailed perpetual inventory records to agree with the physical inventory. The client considers a sale to be made in the period that goods are shipped. Listed below are four items taken from the CPA's sales-cutoff-test worksheet. Which item does not require an adjusting entry on the client's books?

Shipped Recorded as Sale Credited to Inventory Control

A 12-14 12-16 12-16

B 12-31 1-2 12-31

C 12-10 12-19 12-12

D 1-2 12-31 12-31

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Accounting Basics: Recorded as sale credited to inventory control
Reference No:- TGS093482

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