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    Problem 1: Customer Balance Comments From Customer Audit Findings

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    Reginald Valencia
    Here are the adjusted balances of Sales and Inventory for FELLOWSHIP Co. based on the information provided: AUDIT WORKING PAPER INV NO. TERMS SALES INVENTORY BALANCES 25,000,000 1,100,000 ADJUSTMENTS: 00071 Destination (10,000) 9,000 00072 Destination 25,000 20,000 00073 Destination 18,000 12,000 00074 Shipping point 42,000 31,000 00075 Shipping point 92,000 80,000 00076 Shipping point 65,000

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    Problem 1: Customer Balance Comments From Customer Audit Findings

    Uploaded by

    Reginald Valencia
    351 views5 pages
    Here are the adjusted balances of Sales and Inventory for FELLOWSHIP Co. based on the information provided: AUDIT WORKING PAPER INV NO. TERMS SALES INVENTORY BALANCES 25,000,000 1,100,000 ADJUSTMENTS: 00071 Destination (10,000) 9,000 00072 Destination 25,000 20,000 00073 Destination 18,000 12,000 00074 Shipping point 42,000 31,000 00075 Shipping point 92,000 80,000 00076 Shipping point 65,000

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    Week two

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    Here are the adjusted balances of Sales and Inventory for FELLOWSHIP Co. based on the information provided: AUDIT WORKING PAPER INV NO. TERMS SALES INVENTORY BALANCES 25,000,000 1,100,000 ADJUSTMENTS: 00071 Destination (10,000) 9,000 00072 Destination 25,000 20,000 00073 Destination 18,000 12,000 00074 Shipping point 42,000 31,000 00075 Shipping point 92,000 80,000 00076 Shipping point 65,000

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    351 views5 pages

    Problem 1: Customer Balance Comments From Customer Audit Findings

    Uploaded by

    Reginald Valencia
    Here are the adjusted balances of Sales and Inventory for FELLOWSHIP Co. based on the information provided: AUDIT WORKING PAPER INV NO. TERMS SALES INVENTORY BALANCES 25,000,000 1,100,000 ADJUSTMENTS: 00071 Destination (10,000) 9,000 00072 Destination 25,000 20,000 00073 Destination 18,000 12,000 00074 Shipping point 42,000 31,000 00075 Shipping point 92,000 80,000 00076 Shipping point 65,000

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    PROBLEM 1

    You are assigned to audit Ancient of Days Company for the year ending December 31,
    2021.  The accounts receivable were circularized as at December 31,2021 and the
    following exceptions/replies have not been disposed of at the date of your examination.

    COMMENTS FROM
    CUSTOMER BALANCE AUDIT FINDINGS
    CUSTOMER

    Ancient Of Days received


    Balance was paid on December
    Almighty P 30,000 mailed check on January 20,
    29,2021
    2022.

    AOD credited accounts


    Balance was offset by our
    Wonderful 7,400 payable for P7,400 to record
    December 10 shipment of tires.
    purchase  of tires.

    The above balance has been The payment was credited to


    Counselor 16,200
    paid. customer Holy.

    Our record show a higher A new confirmation was


    Holy 10,000
    balance, please check. made.

    The shipment costing P16,300


    We do not owe Ancient of Days was made on December 29,
    anything as of the goods were 2021 and the goods were not
    Awesome 23,700
    received on January 2022, FOB included in recording the
    destination. December 31, 2021 inventory
    summary.

    Our deposit of P45,000 should AOD had previously credited


    Healer 15,000
    cover this balance. the deposit to sales.

    Warrior 6,500 We never received these goods. The shipment was


    erroneously made to another
    customer and the goods
    costing P5,100 are now on its
    way to customer Warrior. 
    The shipment, FOB shipping
    point was made on January
    31,2021

    AOD’s clerk erroneously


    computed the unit price at
    We are rejecting the price,
    Majestic 10,000 P200.  The correct pricing
    which is too much.
    should have been at P120 per
    unit.

    Amount is ok.  Since this is on


    Goods cost P12,000 and were
    consignment, we will remit
    Provider 18,000 appropriately included in
    payment upon selling the
    AOD’s inventory.
    goods.

    The CM dated November


    CM No. 8118 cancels this
    Great 600 30,2021 was recorded by
    balance.
    AOD in January 2022.

    Ancient of Days has not recorded yet its 2015 inventory.


    Required:  Prepare audit working papers and adjusting entries.  

    Previous Next

    PROBLEM 1
    The following are accounts receivable of your client as of December 31,2021:

    ACCOUNTS DATE DEBIT CREDIT


    10-Aug 487  
    11-Sep   487
    KIND, INC. 12-Sep 486  
    20-Oct 345  
    23-Oct 271  
    25-Nov   616
    24-Dec 1,000  
    28-Dec   457
    29-Dec   846
    4-Sep 648      -    
    7-Sep 152  
    10-Sep   648
    TENDER CO.
    26-Nov 201  
    2-Dec 286  
    6-Jan   201
    1-Aug 898  
    2-Sep   898
    14-Nov 714  
    18-Dec 1,206  
    THUNDER CORP.
    23-Dec   500
    29-Dec   100
    15-Jan   700
    16-Jan   714
    18-Sep 413  
    20-Sep 216  
    15-Oct   200
    29-Oct 1,195  
    KEEN CO.
    30-Oct   200
    30-Nov 904  
    27-Dec   200
    31-Jan   413
    20-Jul 660  
    15-Sep 1,020  
    KNOW, LTD.
    3-Oct 849  
    31-Oct 904  
    3-Nov   20
    15-Nov   660
    4-Dec 1,516  
    11-Dec   1,000
    15-Dec   202
    20-Dec   800
    6-Jan   702
    11-Jan   716
    25-Jan   101

    REQUIRED:
    Prepare Aging of Accounts Using (excel format):

    1. FIFO
    2. Specific Invoice Basis

    Prepare PAJE

    PROBLEM 
    In testing the sales cut-off for the FELLOWSHIP Co. in connection with an audit for the
    year ended December 31,2015, you obtained the following information.  A physical
    inventory was taken as of the close of business on December 31, 2015; all customers
    are within a 3-day delivery area of FELLOWSHIP Co. plant.
                The unadjusted balances for sales and inventories are P 25,000,000 and P
    1,100,000, respectively.

    DATE PRICES
    INV
    FOB TERMS
    NO.
    SHIPPED RECORDED SALES COST

    00071 Destination 12/20/07 12/31/07 10,000 9,000


    00072 Destination 12/31/07 01/02/08 25,000 20,000
    00073 Destination 12/31/07 12/31/07 18,000 12,000
    00074 Shipping point 12/31/07 12/29/07 42,000 31,000
    00075 Shipping point 12/31/07 01/02/08 92,000 80,000
    00076 Shipping point 01/02/08 12/23/07 65,000 51,000
    00077 Shipping point 01/05/08 01/06/08 75,000 58,000
    00078 Destination 12/25/07 01/03/08 39,000 20,000
    00079 Shipping point 01/04/08 12/31/07 86,000 82,000
    00080 Destination 01/05/08 01/02/08 50,000 40,000

    REQUIRED:  Compute for the adjusted balances of Sales and Inventory, use the format below.
     

    AUDIT WORKING PAPER

      INV NO. TERMS SALES INVENTORY

    BALANCES        

    ADJUSTMENTS:        

             

             

             

             

             

    ADJUSTED BALANCES        

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