The following accounts receivable confirmations were sent out by you and returned to you from Superiors customers.
Question:
The following accounts receivable confirmations were sent out by you and returned to you from Superior’s customers. Based on the customer’s comments indicate what action you would take?
Dear Mr. Jones, Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2014 which is shown on our records as $24,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference. Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience. James Blake James Blake Controller Superior Company
To Miller, CPA: The amount shown above is correct as of December 31, 2014, except as follows: We received $24,000 of goods on consignment from Superior on December 10, 2014, but they are not sold yet. Andy Briggs Accounts Payable Supervisor Grove Retailing
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor-Yi