Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk writes the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2016, was recorded on document 2167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late August and early September, shipping documents are billed on sales invoices as follows: Requirement b. Which sales invoices, if any, are recorded in the wrong accounting period? Prepare an adjusting entry to correct the financial statement for the year ended August 31, Assume that the company uses a periodic inventory system (inventory and cost of sales do not need to be adjusted). Begin by completing the table below to assess which sales invoices, if any, are recorded in the wrong accounting period. Begin by assessing the amounts that were recorded in the August sales journal, and then do the same for those amounts recorded in the September sales journal. From August Sales Journal: Day of Sales Shipping Amount Month Invoice No. Document No. of Sale Cutoff Issue? 30 5431 $726.11 30 5434 4,214.30 31 5432 419.83 31 5433 1,620.22 31 5435 47.74 Part 3 From September Sales Journal: Day of Sales Shipping Amount Month Invoice No. Document No. of Sale Cutoff Issue? 1 5437 $2,541.31 1 5436 106.39 1 5438 852.06 2 5440 1,250.50 2 5439 646.58

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 1MP

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Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk writes the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2016, was recorded on document 2167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late August and early September, shipping documents are billed on sales invoices as follows:

Requirement b. Which sales invoices, if any, are recorded in the wrong accounting period? Prepare an adjusting entry to correct the financial statement for the year ended August 31,

Assume that the company uses a periodic inventory system (inventory and cost of sales do not need to be adjusted).

Begin by completing the table below to assess which sales invoices, if any, are recorded in the wrong accounting period. Begin by assessing the amounts that were recorded in the August sales journal, and then do the same for those amounts recorded in the September sales journal.

From August Sales Journal:
	Day of	Sales	Shipping	Amount
	Month	Invoice No.	Document No.	of Sale	Cutoff Issue?
	30	5431		$726.11
	30	5434		4,214.30
	31	5432		419.83
	31	5433		1,620.22
	31	5435		47.74

Part 3


From September Sales Journal:
	Day of	Sales	Shipping	Amount
	Month	Invoice No.	Document No.	of Sale	Cutoff Issue?
	1	5437		$2,541.31
	1	5436		106.39
	1	5438		852.06
	2	5440		1,250.50
	2	5439		646.58

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