You are engaged to perform an audit of the accounts of the Butterfly Corporation for the year ended December 31, 2022, and have observed the taking of the physical inventory of the company on December 30, 2022. Only merchandise shipped by Butterfly to customers up to and including December 30, 2022 have been eliminated 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. You are to assume that all purchase invoices have been correctly recorded. The following lists of sales invoices are entered in the sales books for the months of December 2022 and January 2023, respectively. (See attached image) Requirement: Prepare the necessary adjusting journal entries at December 31, 2022.
You are engaged to perform an audit of the accounts of the Butterfly Corporation for the year ended
December 31, 2022, and have observed the taking of the physical inventory of the company on
December 30, 2022. Only merchandise shipped by Butterfly to customers up to and including December
30, 2022 have been eliminated 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. You are to assume that all purchase invoices have been correctly recorded.
The following lists of sales invoices are entered in the sales books for the months of December 2022 and
January 2023, respectively. (See attached image)
Requirement: Prepare the necessary
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