9.46 Sales And Inventory Cutoff Case Study

9.46 Sales/Inventory Cutoff In view of the information given, the following adjusting entries would be necessary: For the first item: Inventory Control 28,400 Inventory Variation (CGS) 28,400 For the third item: Sales 21,300 Accounts Receivable 21,300 Inventory Control 18,900 Cost of Sales 18,900 Since the goods in the first item were shipped prior to the taking of the physical inventory, the Inventory Control account was reduced by the cost of these goods in the adjustment that arose from the physical inventory. Since the client credited Inventory Control for the cost of