The Auditors of Mikel's Shops Obtained the Following Information When

question 16

Essay

The auditors of Mikel's Shops obtained the following information when performing cutoff testing procedures during their observation of Mikel's physical inventory count at December 31, 2020:
$\begin{array}{lcccc}\text { Bill of Lading Number }&1235&1236&1237&1238\\\text { Date } & 12 / 31 / 20 & 12 / 31 / 20 & 1 / 2 / 20 & 1 / 2 / 20 \\\text { Sales price } & \$ 12,000 & \$ 4,500 & \$ 18,000 & \$ 16,000 \\\text { Cost of goods } & \$ 9,000 & \$ 3,000 & \$ 12,000 & \$ 12,000\end{array}$ When comparing the cutoff information to the sales records, the auditors found that all these shipments were recorded as 2020 sales. The goods shipped on bills of lading 1235 and 1236 were not counted in the inventory, but the goods on bill of lading 1237 and 1238 were included.Required:Prepare the appropriate journal entry to correct the cutoff error. (If no entry is required for a transaction/event, select "No journal entry required")

---

Definitions:

Blog

A type of website or part of a website that contains written content, often informal diary-style discussion or informational posts.

Hub

A central point of connection in a network where nodes can communicate, often simplifying the linkage between devices or systems.

Bing

A web search engine owned and operated by Microsoft, offering various search services including web, video, image, and map searches.

Google

A multinational technology company specializing in Internet-related services and products, including search engines, online advertising, and software.