ACCOUTING - AUDIT CASE - PLEASE ANSWER THE QUESTION VERY DETAIL AND GIVE YOUR REASON WHY U MAKE THE ADJUSTING ENTRIES

You are engaged to audit the Ferrick Corporation for the year ended December 31, 2009. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2009, has been eliminated from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB'shipping point basis. You are to assume that all purchase invoices have been correctly recorded.

The following lists of sales invoices are entered in the sales journal for the months of December 2009 and January 2010, respectively.

		SalesInvoiceAmount			Sales Invoice Date		CostOfMerchandiseSold			DateShipped
December 2009
a.		$	3,000		Dec. 21		$	2,000		Dec. 31
b.			2,000		Dec. 31			800		Dec. 13
c.			1,000		Dec. 29			600		Dec. 30
d.			4,000		Dec. 31			2,400		Jan. 9
e.			10,000		Dec. 30			5,600		Dec. 29*
January 2010
f.		$	6,000		Dec. 31		$	4,000		Dec. 30
g.			4,000		Jan. 2			2,300		Jan. 2
h.			8,000		Jan. 3			5,500		Dec. 31
*Shipped to consignee.

Required: You are to ensure that there is proper cut-off of sales and inventory. If an item is not properly recorded, prepare the necessary adjusting entries and give your reason why u make the necessary adjusting entries