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at first glance theres a lot of information in this question so lets use this little trick where we read the last part of the question to figure out what were focused on and the last sentence is even rather big so lets go to the second half of the last sentence which says what impact will an adjustment have on jumpstarts year 5 net income one adjustment to net income that means were going to be focusing on an adjusting entry so basically the auditing they probably identified an air or some sort of misstatement and we need to propose an adjusting entry but we need to understand what that entry is to figure out what the impact to net income would be right so going back to the top it says during the year 5 audit of jumpstart Corp which we already know the audit team identified a 200 000 sale that was recorded on December 28th year five all right so they recognized two hundred thousand dollars of Revenue in the year five Financial State now the sale must have been tested because whe
