Reference no: EM132749870

Push Company is a lawn mower manufacturer. Push fell short of meeting its sales estimates for its December 31, 2019 year-end. The company expects to receive a large order for $60,000 of lawn mowers from Pull Company, a major customer, in May 2020. On January 23, Push approached Pull with the suggestion that Pull back date its order so that it is recorded on December 1st. Push offered Pull a significant discount for placing the order effective December 1st. In addition, under the terms of the back-dated order, Push agreed to hold the inventory until the scheduled shipment in May. Under normal circumstances, customers are expected to pay off their balance within 30 days of the sale. Under the terms of the back-dated order, Push agreed to accept payment within 30 days of delivery. Pull agreed to this arrangement and placed the order with Push effective December 1st. Push recognized a Bill & Hold sale by back-dating the invoice to year-ending December 31, 2020.

Problem 1: The sales invoice was back-dated to December 2019 in order to deceive the auditors that _______________________.

a. The merchandise had been shipped in December.
b. Title of ownership had transferred in December.
c. Pull remitted payment in December 2019
d. All of the above