An auditor is reviewing sales cutoff as of March 31,2010.All sales are shipped FOB destination and the company records sales three days after shipment.The auditor notes the following transactions: $$\begin{array} { | l | l | r | r | }
\hline \text { Date Shipped } & \text { Month Recorded } & \text { Selling Price (000's) } & \text { Cost (000's) } \
\hline \text { March 28 } & \text { March } & \$ 192 & \$ 200 \
\hline \text { March 29 } & \text { March } & 44 & 40 \
\hline \text { March 30 } & \text { April } & 77 & 81 \
\hline \text { April 2 } & \text { March } & 208 & 220 \
\hline \text { April 5 } & \text { April } &92 & 84\
\hline
\end{array}$$ If the client records the required adjustments,the net effect on income in thousands of dollars for the period ended March 31,2011 is

Question

An auditor is reviewing sales cutoff as of March 31,2010.All sales are shipped FOB destination and the company records sales three days after shipment.The auditor notes the following transactions: $$\begin{array} { | l | l | r | r | } 
\hline \text { Date Shipped } & \text { Month Recorded } & \text { Selling Price (000's) } & \text { Cost (000's) } \
\hline \text { March 28 } & \text { March } & \$ 192 & \$ 200 \
\hline \text { March 29 } & \text { March } & 44 & 40 \
\hline \text { March 30 } & \text { April } & 77 & 81 \
\hline \text { April 2 } & \text { March } & 208 & 220 \
\hline \text { April 5 } & \text { April } &92 & 84\
\hline
\end{array}$$ If the client records the required adjustments,the net effect on income in thousands of dollars for the period ended March 31,2011 is

Quizplus · Accepted Answer

The Answer of An auditor is reviewing sales cutoff as of March 31,2010.All sales are shipped FOB destination and the company records sales three days after shipment.The auditor notes the following transactions: $$\begin{array} { | l | l | r | r | } 
\hline \text { Date Shipped } & \text { Month Recorded } & \text { Selling Price (000's) } & \text { Cost (000's) } \
\hline \text { March 28 } & \text { March } & \$ 192 & \$ 200 \
\hline \text { March 29 } & \text { March } & 44 & 40 \
\hline \text { March 30 } & \text { April } & 77 & 81 \
\hline \text { April 2 } & \text { March } & 208 & 220 \
\hline \text { April 5 } & \text { April } &92 & 84\
\hline
\end{array}$$ If the client records the required adjustments,the net effect on income in thousands of dollars for the period ended March 31,2011 is

An Auditor Is Reviewing Sales Cutoff as of March 31,2010