The following responses, A-E, were received from a positive confirmation effort for balance sheet dated December 31, 2013, related to accounts receivable. State for each (a) whether it represents an exception, and (b) how you would clear the exception or propose an adjustment, where necessary.
1) We cannot answer your request for confirmation; we use an accounts payable voucher system and can only confirm individual invoices.
2) We do not have an accounts payable balance at 12/31/2013. The invoice was billed on December 30, 2013, but the merchandise was shipped FOB destination and was received on January 5, 2014.
3) We do not owe any balance. The merchandise amount agrees with the invoice dated December 12, 2013, for $8,564, but according to the sales terms we do not owe for merchandise unless we sell it, and we can return all unsold merchandise by March 31, 2014 without owing any money.
4) The balance of $8,912 was paid on December 30, 2013, and our cancelled check cleared our bank on January 7, 2014.
5) The merchandise was returned on December 27, 2013, FOB shipping point per our bill of lading, and we received a credit memo on January 12 for this merchandise.