Your client's balance sheet date is 30/6/2012, the audit report date is 31/8/2012 and the financial statements are issued 15/9/2012. A customer with a material outstanding accounts receivable balance declared bankruptcy on 5/7/2012 due to a warehouse fire that occurred 27/6/2012. State whether this situation warrants an adjustment to the financial statements, disclosure in footnotes but no adjustment or no action is required. Justify your answer.

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The Answer of Your client's balance sheet date is 30/6/2012, the audit report date is 31/8/2012 and the financial statements are issued 15/9/2012. A customer with a material outstanding accounts receivable balance declared bankruptcy on 5/7/2012 due to a warehouse fire that occurred 27/6/2012. State whether this situation warrants an adjustment to the financial statements, disclosure in footnotes but no adjustment or no action is required. Justify your answer.

Your Client's Balance Sheet Date Is 30/6/2012, the Audit Report