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.) | 4.The company shipped merchandise (FOB shipping point) on December 29, year 2, and recorded relief of inventory, but not the sale, on that date. The customer has not received the merchandise and the company has not recorded the sale as of January 3, year 3.
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