For each of the potential December 31, year 2, sales cutoff problems listed below, select the appropriate adjustment for year 2 from the list provided. Each item in the list may be used once, more than once, or not at all a. The company shipped merchandise (F. O.B. destination) to a customer on December 29, Year 2, and recorded the sale but not the relief of inventory. The customer received the merchandise on December 31, Year 2.
b. The company shipped merchandise (F. O.B. shipping point) on December 3, Year 2, to a customer, and recorded the sale and relief of inventory. The customer, unhappy with the merchandise, returned the goods on December 29, Year 2. The company records the following entry upon receipt of the goods: Inventory (dr.), Cost of Sales (cr.)
c. The company shipped merchandise to a consignee on December 16, Year 2, and did not record the transaction. The consignee returned the merchandise on December 28, Year 2. Upon receipt of the goods, the company made the following entry: Inventory (dr.), Sales (cr.)
d. The company shipped merchandise (F. O.B. shipping point) on December 29, Year 2, and recorded relief of inventory, but not the sale, on that date. The customer has not received the merchandise and the company has not recorded the sale as of January 3, Year 3

1.
No adjustment necessary.
Accounts Receivable (dr.) Sales (cr.)

2.
Sales (dr.)
Accounts Receivable (cr.)

3.
Inventory (dr.)
Cost of Sales (cr.)

4.
Cost of Sales (dr.)
Inventory (cr.)