Page 101 - Audit Day 3 - Class Slides
P. 101

THE INVENTORY AND PRODUCTION CYCLE





            AUDITING THE CYCLE – Always think debits and credits!















             Credit                          TO           Processing of                   OR           Writing off of
             Purchase                                     payment                                      stock



                   •Dr Stock                                    •Dr COS                                    • Dr Stock W/off

                   •Cr Payables                                 •Cr Inventory                              • Cr Inventory






















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