Task \#1 - The Audit Work paper Purpose: To ascertain whether service revenue recognized during December, year 7 , is complete and accurate in all material respects in relation to the financial statements taken as a whole As needed, prepare the required adjusting entry in good form (showing debits and credits) for each tick-mark /2008 108 Explanation of Tick-marks Per review of contract, invoice, and service records, we recalculated the amount of revenue A earned and verified that revenue was recognized in the correct period. Per review of the contract and service records, service was finalized and invoiced as of B December 31, 2007. Per review of ledger detail the receivable balance was recorded in unbilled receivables at year end. Per review of the $50,000 contract and invoice, service was for the period December 15 , C year 7 , through January 14, 2008, and should be recognized equally between 2007 and 2008 based on the terms of the contract. D Per physical inventory observation, this was a consignment sale. The product is at the customers warehouse on 12/31/2007 E Per the customer's purchase order, the invoice payment is not due for 90 days. This product was delivered to a public warehouse and the storage fee will be paid by Griffin G/L Agreed amount to general ledger balance at December 31, 2007 F Amount foots, without exception. X Product was invoiced although there is no record of delivery/receipt by the customer