List five analytical procedures for the sales and collection cycle. For each test, describe a misstatement that could be identified. (Note that the letters corresponding to a potential misstatement may be used more than once.)

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A.	A problem with collections, potentially causing an understatement of bad debts and allowance for uncollectible accounts.
B.	All returns were not recorded, or shipments to customers were not in accordance with specifications and were returned (this could result in significant operating problems).
C.	Classification misstatement for nontrade liabilities.
D.	Discounts that were taken by customers and allowed by the company were not recorded.
E.	Misstatement of accounts payable and expenses.
F.	Misstatement in determining the allowance for uncollectible accounts.
G.	Sales cutoff errors or other misstatements involving sales; purchase cutoff errors or other misstatements involving inventory or purchases.
H.	Unrecorded or nonexistence payable accounts.

	Analytical Procedure	Potential Misstatement
1.
2.
3.
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5.

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