Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ii. pretend you are an auditor (i know, i know, th

II. Pretend you are an auditor (I know, I know, this is an amazing dream)....

70.2K

Verified Solution

Question

Accounting

image

II. Pretend you are an auditor (I know, I know, this is an amazing dream). Imagine that you are performing the 12/31/20 financial statement audit of Curly's Coffee and Vinyl Shop. During the substantive procedures, you discovered the situations listed below. If it is a misstatement, then you will need to communicate these to the client and request that they be fixed. In that case, write the correcting journal entry that the client should book to correct (all years with errors). Include date, accounts debited and credited, and amounts. If no correcting entry is needed, then write: no correcting entry necessary and provide a brief explanation. 1) You tested their annual listing sales invoices as of 12/31/20 and discovered that one of the credit customers placed an order for 250 Tom Waits albums on 12/31/20, but it was not shipped until 01/02/21. Curly's sold the albums for a total of $5,000 and it cost them $3,500. Curly's uses the perpetual inventory system, so your journal entry will need to correct sales revenue and inventory

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students