An auditor is reviewing sales cutoff as of March 31, 2019

Subject:AccountingPrice:3.87 Bought7

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An auditor is reviewing sales cutoff as of March 31, 2019. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions:


Date Shipped Month Recorded Selling Price (OOO's) Cost (OOO's)
March 28   March $ 192             $ 200
March 29       March          44                40
March 31         April              81                 77
April 2            March          220                  208
April 5          April             92                84


If the entity records the required adjustments, the net effect on income (in thousands of dollars) for the period ended March 31, 2019 is

Multiple Choice

1. an increase of 12.
2. an increase of 8.
3. a decrease of 12.
4. a decrease of 8.