During the audit of ABBB a series of cutoff issues were identified.For each of the potential December 31, year 2, sales cutoff problems listed below, double-click on the shaded space and select the appropriate adjustment for year 2 from the list provided.Each item in the list may be used once, more than once, or not at all. Selection List | A. | No adjustment necessary. | F. | Accounts receivable (dr.)
Inventory (cr.) | | B. | Accounts receivable (dr.)
Sales (cr.) | G. | Sales (dr.)
Accounts receivable (cr.)
Inventory (dr.)
Cost of sales (cr.) | | C. | Sales (dr.)
Accounts receivable (cr.) | H. | Sales (dr.)
Inventory (cr.) | | D. | Inventory (dr.)
Cost of sales (cr.) | I. | Accounts receivable (dr.)
Sales (cr.)
Cost of sales (dr.)
Inventory (cr.) | | E. | Cost of sales (dr.)
Inventory (cr.) | J. | Sales (dr.)
Cost of sales (cr.) | 2.The company shipped merchandise (FOB shipping point) on December 3, year 2, to a customer, and recorded the sale and relief of inventory. The customer, unhappy with the merchandise, returned the goods on December 29, year 2. The company records the following entry upon receipt of the goods: Inventory (dr.), Cost of Sales (cr.)
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