A business has worked out a draft profit for the year. The following matters have been identified. 1 A customer has been made bankrupt and cannot settle the amount owing. 2 Unsold goods sold on a sale or return basis have been entered in inventory. 3 Rent paid in advance has not been recorded. 4 The owner's cash drawings have been posted to the owner's capital account. Which of these must be adjusted in order to work out the correct profit for the period?
- A1 and 2
- B1 and 3 only
- C1, 3 and 4
- D2 and 3