A Sales cut-off procedure for the audit of the financial statements of Carrie Corp. resulted to the following information: SALES CUT-OFF DECEMBER ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125034 Dec. 26 9,600 FOB Destination 125035 Dec. 26 10,200 FOB Shipping Point 125036 Dec. 27 8,400 FOB Destination (In-Transit) 125037 Dec. 28 22,000 Shipped to Consignee 125039 Dec. 29 6,500 FOB Shipping Point (In-Transit) 125040 Dec, 30 8,800 FOB Shipping Point 120541 Dec. 30 7,200 Free Alongside the Vessel JANUARY ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125042 Dec. 31 11,600 FOB Destination (In-transit) 125043 Dec. 31 8,200 FOB Shipping Point (In-transit) 125044 Jan. 2 6,600 FOB Shipping Point 125045 Jan. 2 10,000 Bill and Hold Agreement Audit Notes: Inventories were physically counted on December 29, 2021 and amounted to P212,000. Gross profit based on Sales is at 40%. Total unadjusted sales and accounts receivables per records were at P4,310,000 and P321,000, respectively. No 125037 were for goods sent to a consignee in Bulacan. Freight costs on these goods paid by the consignee was at P3,000. Per inquiry with the consignee, 30% of these goods were still on hand as of December 31. Agreed commission rate is at 10%. DR No. 125038 were for goods delivered to a customer in Manila in December 29. Related billing is yet to be made since the delivery receipt is yet to be transmitted by the delivery department to the Billing department. The agreed upon sales price as per the approved sales order however is at P12,000. The goods are still in transit as of December 31 and as per the sales invoice the agreed FOB term is FOB Manila. DR No. 125045 were for goods sold on a Bill and Hold Agreement executed in December. What is the adjusted balance of Sales as of November 30?

A Sales cut-off procedure for the audit of the financial statements of Carrie Corp. resulted to the following information: SALES CUT-OFF DECEMBER ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125034 Dec. 26 9,600 FOB Destination 125035 Dec. 26 10,200 FOB Shipping Point 125036 Dec. 27 8,400 FOB Destination (In-Transit) 125037 Dec. 28 22,000 Shipped to Consignee 125039 Dec. 29 6,500 FOB Shipping Point (In-Transit) 125040 Dec, 30 8,800 FOB Shipping Point 120541 Dec. 30 7,200 Free Alongside the Vessel JANUARY ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125042 Dec. 31 11,600 FOB Destination (In-transit) 125043 Dec. 31 8,200 FOB Shipping Point (In-transit) 125044 Jan. 2 6,600 FOB Shipping Point 125045 Jan. 2 10,000 Bill and Hold Agreement Audit Notes: Inventories were physically counted on December 29, 2021 and amounted to P212,000. Gross profit based on Sales is at 40%. Total unadjusted sales and accounts receivables per records were at P4,310,000 and P321,000, respectively. No 125037 were for goods sent to a consignee in Bulacan. Freight costs on these goods paid by the consignee was at P3,000. Per inquiry with the consignee, 30% of these goods were still on hand as of December 31. Agreed commission rate is at 10%. DR No. 125038 were for goods delivered to a customer in Manila in December 29. Related billing is yet to be made since the delivery receipt is yet to be transmitted by the delivery department to the Billing department. The agreed upon sales price as per the approved sales order however is at P12,000. The goods are still in transit as of December 31 and as per the sales invoice the agreed FOB term is FOB Manila. DR No. 125045 were for goods sold on a Bill and Hold Agreement executed in December. What is the adjusted balance of Sales as of November 30?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 15RQSC

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A Sales cut-off procedure for the audit of the financial statements of Carrie Corp. resulted to the following information:

SALES CUT-OFF

DECEMBER ENTRIES

Delivery Receipt No.	Delivery Date	Invoice Price	Remarks
125034	Dec. 26	9,600	FOB Destination
125035	Dec. 26	10,200	FOB Shipping Point
125036	Dec. 27	8,400	FOB Destination (In-Transit)
125037	Dec. 28	22,000	Shipped to Consignee
125039	Dec. 29	6,500	FOB Shipping Point (In-Transit)
125040	Dec, 30	8,800	FOB Shipping Point
120541	Dec. 30	7,200	Free Alongside the Vessel

JANUARY ENTRIES

Delivery Receipt No.	Delivery Date	Invoice Price	Remarks
125042	Dec. 31	11,600	FOB Destination (In-transit)
125043	Dec. 31	8,200	FOB Shipping Point (In-transit)
125044	Jan. 2	6,600	FOB Shipping Point
125045	Jan. 2	10,000	Bill and Hold Agreement

Audit Notes:

Inventories were physically counted on December 29, 2021 and amounted to P212,000.
Gross profit based on Sales is at 40%. Total unadjusted sales and accounts receivables per records were at P4,310,000 and P321,000, respectively.
No 125037 were for goods sent to a consignee in Bulacan. Freight costs on these goods paid by the consignee was at P3,000. Per inquiry with the consignee, 30% of these goods were still on hand as of December 31. Agreed commission rate is at 10%.
DR No. 125038 were for goods delivered to a customer in Manila in December 29. Related billing is yet to be made since the delivery receipt is yet to be transmitted by the delivery department to the Billing department. The agreed upon sales price as per the approved sales order however is at P12,000. The goods are still in transit as of December 31 and as per the sales invoice the agreed FOB term is FOB Manila.
DR No. 125045 were for goods sold on a Bill and Hold Agreement executed in December.

What is the adjusted balance of Sales as of November 30?

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