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Determine the sales and inventory cutoff

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Question: Sales/Inventory Cutoff. Your client took a complete physical inventory count under your observation as of December 15 and adjusted the inventory control account (perpetual inventory method) to agree with the physical inventory count. After considering the count adjustments as of December 15 and after reviewing the transactions recorded from December 16 to December 31, you are almost ready to accept the inventory balance as fairly stated. However, your review of the sales cutoff as of December 15 and December 31 disclosed the following items not previously considered:

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Required: What adjusting journal entries, if any, would you make for each of these items? Explain why each adjustment is necessary.

Reference no: EM131618447

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