An Auditor Is Reviewing Sales Cutoff as of March 31,2010

Multiple Choice

An auditor is reviewing sales cutoff as of March 31,2010.All sales are shipped FOB destination and the company records sales three days after shipment.The auditor notes the following transactions: $$\begin{array} { | l | l | r | r | } \hline \text { Date Shipped } & \text { Month Recorded } & \text { Selling Price (000's) } & \text { Cost (000's) } \\\hline \text { March 28 } & \text { March } & \$ 192 & \$ 200 \\\hline \text { March 29 } & \text { March } & 44 & 40 \\\hline \text { March 30 } & \text { April } & 77 & 81 \\\hline \text { April 2 } & \text { March } & 208 & 220 \\\hline \text { April 5 } & \text { April } &92 & 84\\\hline\end{array}$$ If the client records the required adjustments,the net effect on income in thousands of dollars for the period ended March 31,2011 is

A) An increase of 12.
B) An increase of 8.
C) A decrease of 12.
D) A decrease of 8.