JOB

CORPORATION
PROBLEM 3
1. The amount of trade accounts receivable to be
reported in the audited statement of financial
position at December 31, 2016
2. Allowance for doubtful accounts to be reported in
the audited balance sheet at December 31, 2016
3. Doubtful accounts expense to be reported for the
year ending
4. The net increase (decrease) in the ending inventory
resulting from audit adjustment
5. The net increase (decrease) in net sales from audit
adjustment
THE AMOUNT OF TRADE ACCOUNTS RECEIVABLE TO
BE REPORTED IN THE AUDITED STATEMENT OF
FINANCIAL POSITION AT DECEMBER 31, 2016
ALLOWANCE FOR DOUBTFUL ACCOUNTS TO BE
REPORTED IN THE AUDITED BALANCE SHEET AT
DECEMBER 31, 2016
DOUBTFUL ACCOUNTS EXPENSE TO BE REPORTED
FOR THE YEAR ENDING
THE NET INCREASE (DECREASE) IN THE ENDING
INVENTORY RESULTING FROM AUDIT ADJUSTMENT

• NO EFFECT, because the company used FOB

shipping point and the goods were shipped to a
customer on December 31, 2016. The goods were not
included in the December 31, 2016 inventory.
THE NET INCREASE (DECREASE) IN NET SALES FROM
AUDIT ADJUSTMENT