A business had calculated a draft profit for the year.
The following items have been discovered.
1 A customer has been declared bankrupt and is unable to pay the amount they owe.
2 Unsold goods on sale or return basis have been included in inventory.
3 Rent paid in advance has not been included.
4 The owner's cash drawings have been entered into the owner’s capital account.
Which of these need to be adjusted to calculate the correct profit for the period?
1 )
1 and 2
1 and 3 only
3 )
1, 3 and 4
4 )
2 and 3
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