II. Pretend you are an auditor (I know, I know, this is an amazing dream)....
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Accounting
II. Pretend you are an auditor (I know, I know, this is an amazing dream). Imagine that you are performing the 12/31/20 financial statement audit of Curly's Coffee and Vinyl Shop. During the substantive procedures, you discovered the situations listed below. If it is a misstatement, then you will need to communicate these to the client and request that they be fixed. In that case, write the correcting journal entry that the client should book to correct (all years with errors). Include date, accounts debited and credited, and amounts. If no correcting entry is needed, then write: no correcting entry necessary and provide a brief explanation. 1) You tested their annual listing sales invoices as of 12/31/20 and discovered that one of the credit customers placed an order for 250 Tom Waits albums on 12/31/20, but it was not shipped until 01/02/21. Curly's sold the albums for a total of $5,000 and it cost them $3,500. Curly's uses the perpetual inventory system, so your journal entry will need to correct sales revenue and inventory
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