What would be the appropriate jounal entry to correct the cut-off error, if the auditor were comparing the cut-off information to the sales records, and found that all the shipments were recorded as 2007 sales. The goods shipped on bill of lading 1235 and 1236 were not counted in the invetory, but the goods on bill of lading 1236 and higher were included.


Bill of Landing 1235 1236 1237 1238
date 12/31/07 12/31/07 01/02/08 01/02/08
Sales Price $12,000 $4,500 $18,000 $16,000
cost of gods $9,000 $3,000 $12,000 $12,000