Reference no: EM132903358

You are engaged in the audit of Eunise Co. a new client. The Eunise Company is on calendar year basis. The following data were found during your audit:

a. Goods in transit shipped FOB destination by a supplier in the amount of ?20,000 had been excluded from the inventory, the further testing revealed that the purchase had been recorded
b. Goods costing ?10,000 had been received, included in inventory, and recorded as a purchase. However, your inspection revealed that the goods were found to be defective and would be immediately returned
c. Materials costing ?50,000 and billed on December 30 at a selling price of ?64,000 had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination
d. Goods costing ?14,000 was out on consignment with Mariel, Inc Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at ?16,000
e. The sale of 30,000 worth of materials and costing ?24,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory.

Further inspection of the client's records revealed the following December 31, 2021 balances:

Inventory, ?220,000;

Accounts receivable, ?104,000;

Accounts payable, ?138,000;

Sales ?1,010,000;

Purchases; ?640,000;

Net Income, ?180,400

Problem 1: The adjusted balance of inventory, December 31,2021

a. ?250,000
b. ?274,000
c. ?260,000
d. ?300,000

Problem 2: The adjusted balance of accounts receivable, December 31,2021

a. ?36,000
b. ?64,000
c. ?24,000
d. ?16,000

Problem 3: The adjusted balance of accounts payable, December 31,2021

a. ?158,000
b. ?138,000
c. ?118,000
d. ?108,000