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

question 84

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 31,2009:
When comparing the cutoff information to the sales records,the auditors found that all these shipments were recorded as 2011 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. $$\begin{array} { | l | r | r | r | r | } \hline \text { Bill of Lading Number } & 1235 & 1236 & 1237 & 1238 \\\hline \text { Date } & 12 / 31 / 11 & 12 / 31 / 11 & 1 / 2 / 11 & 1 / 2 / 11 \\\hline \text { Sales price } & \$ 12,000 & \$ 4,500 & \$ 18,000 & \$ 16,000 \\\hline \text { Cost of goods } & \$ 9,000 & \$ 3,000 & \$ 12,000 & \$ 12,000 \\\hline\end{array}$$

---

Definitions:

CTRL+ENTER

In many applications, CTRL+ENTER is a keyboard shortcut used to perform a specific function, such as inserting a page break or sending an email.

Insertion Point

The location in a document or field where new text or data will be inserted.

Document Properties

Metadata information about a document, such as author, title, and subject.

Slide Show

A slide show is a presentation of a series of images or slides displayed on a screen, sometimes with accompanying text or audio.