- 6 -
to 12 weeks the daily cash register tapes and the copies of the
receipts reflecting Lyell Metal’s purchases of scrap metal.
Before the cash register tapes and the copies of the receipts
were disposed of, Lyell Metal's accountant occasionally would
spot check the accuracy of the receipts with the inventory
records that were maintained by Lyell Metal.
Since October of 1991, Lyell Metal has retained the daily
cash register tapes and copies of the receipts reflecting its
purchases of scrap metal by cash. Such receipts, however, do not
reflect the identity of the customers from whom Lyell Metal
purchased scrap metal.
During 1989 through 1992, certain inventory records were
maintained by Lyell Metal and apparently reflect only the type
and quantity of scrap metal that was purchased by check and by
cash and the scrap metal that was part of Lyell Metal’s inventory
at any one point in time.
For 1989, 1990, and 1991, Lyell Metal’s cost-of-goods sold
was computed based on the canceled checks (i.e., those checks
made payable to specific payees to take into account scrap metal
purchased by check and also the checks made payable each day to
cash to take into account scrap metal purchased by cash).
For 1992, Lyell Metal's cost-of-goods sold was computed
based on the copies of the receipts of scrap metal purchased that
were retained for that year, and also on the canceled checks.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011