In testing cutoff for purchases and payables at December 31, an auditor is confronted with the following four scenarios. Which of the four most likely represents a cutoff error, requiring that the auditor propose an adjusting journal entry?

a. Shipping terms are FOB shipping point. Goods were shipped on December 31. The purchase was recorded on December 31.

b. Shipping terms are FOB destination. Goods were shipped on December 31. The purchase was recorded on December 31.

c. Shipping terms are FOB shipping point. Goods were shipped on January 2. The purchase was recorded on January 4.

d. Shipping terms are FOB destination. Goods were shipped on December 31. The purchase was recorded on January 2.

Choose the correct answer.