Coach, Inc. is a maker of handbags and other women’s and men’s accessories.  Assume the following were reported in Coach’s adjusted trial balance and were used to prepare its June 30, 2017, year-end financial statements. 

Required: 

1. Based on the information in the trial balance, list two pairs of balance sheet and income statement accounts that likely required deferral adjustments as of June 30 (no computations are necessary). 

2. Based on the information in the trial balance, list two pairs of balance sheet and income statement accounts that likely required accrual adjustments as of June 30 (no computations are necessary).

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COACH, INC. Adjusted Trial Balance At June 30, 2017 (in millions) Debit Credit Cash $ 698 Accounts Receivable 107 Inventories 345 Prepaid Expenses Property and Equipment Accumulated Depreciation Other Assets Accounts Payable Wages Payable 234 755 $ 291 426 134 304 Income Taxes Payable 12 Other Current Liabilities 308 Contributed Capital 24 Retained Earnings 709 Sales Revenue 3,181 Cost of Sales 774 Selling and Administrative Expenses 1,260 Interest Revenue 48 Income Tax Expense 412 $5,011 $5,011