tems 15 to 17 are based on the following information: You are engaged to perform an audit of the accounts of the Durian Corporation for the year ended December 31, 2005, and have observed the taking of the physical inventory of the company on December 27, 2005. Only merchandise shipped by the Durian Corporation to customers up to and including December 27, 2005 have been removed or excluded from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB shipping point basis. The following lists of sales invoices are entered in the sales books for the manths of December 2005 and January 2006, respectively. Sales Invoice Amount Date Date Shipped December 2005 12/23/05 25,000 12/31/05 (b 12/27/05 12/27/05 01/05/06 18,000 30,000 12,000 01/08/06 12/29/05 12/05/05 16,000 (9) 8,000 20,000 01/07/06 14,000 12/31/05 12/31/05 12/27/05 7,500 11,000 12/29/05 01/04/06 January 2006 Page 24 of 48 (k) 01/08/06 9,000 01/09/06 12/31/05 01/10/06 5.000 SS
tems 15 to 17 are based on the following information: You are engaged to perform an audit of the accounts of the Durian Corporation for the year ended December 31, 2005, and have observed the taking of the physical inventory of the company on December 27, 2005. Only merchandise shipped by the Durian Corporation to customers up to and including December 27, 2005 have been removed or excluded from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB shipping point basis. The following lists of sales invoices are entered in the sales books for the manths of December 2005 and January 2006, respectively. Sales Invoice Amount Date Date Shipped December 2005 12/23/05 25,000 12/31/05 (b 12/27/05 12/27/05 01/05/06 18,000 30,000 12,000 01/08/06 12/29/05 12/05/05 16,000 (9) 8,000 20,000 01/07/06 14,000 12/31/05 12/31/05 12/27/05 7,500 11,000 12/29/05 01/04/06 January 2006 Page 24 of 48 (k) 01/08/06 9,000 01/09/06 12/31/05 01/10/06 5.000 SS
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
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 32CYBK
Related questions
Question
Please answer no.16 correctly and provide computation. Thank you;)
Transcribed Image Text:16. How much sales for the month of January 2006 were erroneously recorded in December 2005?
a. Zero
c. P12,500
b.
P62,000
d. P20,000
Transcribed Image Text:Items 15 to 17 are based on the following information:
You are engaged to perform an audit of the accounts of the Durian Corporation for the year ended
December 31, 2005, and have observed the taking of the physical inventory of the company on
December 27, 2005. Only merchandise shipped by the Durian Corporation to customers up to and
including December 27, 2005 have been removed or excluded from inventory. The inventory as
determined by physical inventory count has been recorded on the books by the company's controller.
No perpetual inventory records are maintained. All sales are made on an FOB shipping point basis.
The following lists of sales invoices are entered in the sales books for the manths of December 2005 and
January 2006, respectively.
Sales Invoice
Date
Amount
Date Shipped
December 2005
12/23/05
25,000
12/31/05
(b
12/27/05
18,000
12/27/05
30,000
01/05/06
(d
12,000
01/08/06
(e
16,000
12/29/05
(f)
(e
8,000
12/05/05
20,000
01/07/06
(h
14,000
12/31/05
January 2006
()
7,500
12/31/05
12/27/05
12/29/05
11,000
01/04/06
Page 24 of 48
01/09/06
12/31/05
(k)
01/08/06
9,000
01/10/06
5.000
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