KnK Auto parts sells new parts to auto dealers. As part of the policy, the company 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 year ended December 31, 2022, was recorded on document 3167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late December 2022 and early January 2023, shipping documents are billed on sales invoices as follows: + Shipping Document No Sales Invoice No 3163 5332 3164 3165 3166 3167 3168 3169 3170 3171 3172 5326 5327 5330 5331 5328 5329 5333 5335 5334
KnK Auto parts sells new parts to auto dealers. As part of the policy, the company 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 year ended December 31, 2022, was recorded on document 3167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late December 2022 and early January 2023, shipping documents are billed on sales invoices as follows: + Shipping Document No Sales Invoice No 3163 5332 3164 3165 3166 3167 3168 3169 3170 3171 3172 5326 5327 5330 5331 5328 5329 5333 5335 5334
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Subject: Accounting
Transcribed Image Text:KnK Auto parts sells new parts to auto dealers. As part of the policy, the company 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
year ended December 31, 2022, was recorded on document 3167. Shipments are billed in the
order that the billing clerk receives the shipping documents. For late December 2022 and early
January 2023, shipping documents are billed on sales invoices as follows:
Shipping Document No Sales Invoice No
3163
5332
3164
3165
3166
3167
3168
3169
3170
3171
3172
5326
5327
5330
5331
5328
5329
5333
5335
5334
Transcribed Image Text:The December 2022 and January 2023 sales journals have the following information included:
Sales Journal - Dec 2022
Day of the Month
30
30
31
31
31
Sales Journal - Jan 2023
1
1
1
2
2
Sales Invoice no Amount of Sale
72,611
191,430
41,983
62,022
4,774
5326
5329
5327
5328
5330
5332
5331
5333
5335
5334
264,131
10,639
85,206
125,050
64,658
What adjusting entry is necessary to correct KnK's financial statements for the year ended Dec 31, 2022?
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