From my understanding, based off the accrual basis accounting method the inclusion of $48,500 in accounts receivable and $15,650 in accounts payable are correct on the revised financial statement. Accrual-basis accounting is common for larger companies to record transactions that change a company's financial statements in the periods in which the event occurs (Mitchell, J.J.W.P.D.K.J. E. (2024)) as seen in the Meridan Co. example. The company has $48,500 in transactions collected and $15,650 in expenses that are yet to be paid out. This is an example of why financial statements should not be compiled on a cash basis for companies of any significant size, it can become confusing and misleading. In regard to the $20,000 inclusion in accounts receivable, I read professors Benson's post on this question being addressed more in chapter 5, later in the term. From what I understood, the transaction involved a delivery contract for sales for the following year on January 5, 2024. The instruction Cliff gave to the accountant to include the $20,000 was probably not accurate being that the delivery date was scheduled for the following year. Had the delivery date been before the year-end it would have been valid instruction to include it on the year-end statement. The company should record the $20,000 revenue for merchandise ordered by the customer when a delivery date is established, January 5, 2024