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Question - On December 30, 2019, Ozark Company sold merchandise for P75,000 to Xacks Company. The terms of the sale were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Xacks Company on January 5, 2020. Due to clerical error, the sale was not record until January 2020 and the merchandise, sold at a 25% markup on cost was included in Ozark's inventory on December 31, 2019. What is the effect of the errors on cost of goods sold for the year ended December 31, 2019?
What you know about warranties, identify three most significant risks you have identified as you plan the audit procedures for this account.
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