 To see this fully, I'm gonna actually enter a transaction that happens in March, and then that's the transaction that we'll imagine we'll pull back into the prior period. So I'm just gonna enter a normal journal entry just to show what I'm doing here. I'm gonna enter a normal journal entry. It's gonna be with an invoice. And let's say it's gonna go to Anderson Guitars. Anderson. And let's say that it happened in March. Let's say like March 5th. So 03052303. Oh, let's keep it at that 030523. Okay. And so then that's after the cutoff date, but we're gonna imagine that the actual work was done before the cutoff date. You can imagine this most clearly with like a job cost system where you're trying to take the time from like your staff and enter it into the system. It's quite possible that you're gonna enter the time into the system at one point after the cutoff date when the work was actually done before the cutoff date because you had to collect the time before you invoice the client. But we're gonna do it with an inventory situation just because that adds a level of complexity with having to track the inventory on the invoice. So let's go down here and say that it was an ELP that was sold. So it's an ELP. That's a guitar epiphone. We're gonna say one of those. So here's our transaction. Normal transaction here. This is gonna be what's gonna happen. It's an invoice that's gonna be recorded after the cutoff date, even though we're gonna imagine we delivered the guitar before the cutoff date for whatever reason. And so we have to pull it back into the current system. So in March, let's hit the location and change this to our generic 5%. It's gonna record accounts receivable increasing AR by 525, including the sales tax and the sub ledger for Anderson guitars. The other side's gonna go to revenue, but only for 500. The sales tax is gonna be increased by 25. The inventory, that's why we did an inventory item to deal with the added level of inventory complication. Inventory is gonna go down by the amount driven by the item, which I think is like $400 here. And the sub ledger of inventory is gonna go down in units and the cost of goods sold. The expense related us consuming the guitar is gonna go up, the net impact on net income will be the revenue of 500 minus the cost of goods sold. Let's save it, close it, check it out. So we'll say, all right, let's save it and close it. So if I go back to my balance sheet, let's up the date range to the end of March, 03, 31, 2, 3, and see that side by side. So now in AR accounts receivable in March, we've got this invoice that happened in March, but the problem is that it should have been recorded. We think the actual work was done before the cutoff. That's the issue. I'm gonna go back, the other side's on revenue. So if I go over here and I change the rate to 03, 31, 2, 3, the range, the rate, the range and run it. So now we've got a revenue, revenue here for the 500 minus the cost of goods sold 400 that happened in March again. So that's gonna be, but we think that revenue should have been earned before the cutoff. You see the issue. You can see the temptation of certain people trying to manipulate their books might try to deal with this timing differences to have things reported in March before or after the cutoff, depending on how they're trying to manipulate the books. But even if they're not trying to manipulate the books, you can see how it could happen naturally in a job cost type of system just based on the billing process, for example. And then of course, the other side is going to, the sales taxes is gonna have an issue with regards to sales tax. And then the inventory is also gonna have an issue with it because we had, if I go into inventory for March, we've got this decrease of the inventory of the 400 and we saw the cost of goods sold on the income statement. We also have a sub ledger for inventory tracking by unit. So if I go to the tab to the right, right click on it, duplicate it and go to my reports down below, it's taken a long time to duplicate. You're testing my patience here, QuickBooks. I'm gonna, in any case, reports on the left, let's go to the inventory valuation summary. And so there it is broken out by the units that we have and the 9698 should tie out to what we have over here on the balance sheet for inventory 9698. Let's go back on over, change the date up to 033123 and see it as of that, 4346. And there's the 4346. Okay, so now the fact is, and you can most clearly see this on the income statement, we're saying, hey, look, your income is wrong because this actually happened. We shipped the goods in February and you've recorded the invoice in March. So we need to fix that. Now you might say, well, the easiest way to fix that is to just to go into the actual invoice here and go into that invoice and just change the date to whatever date you think is the proper date. But we don't normally wanna do that because the invoice is gonna be tied to other forms, number one, to the received payment and so on and so forth. And for whatever reason, the accounting process is doing what they're doing, assuming it's a legitimate process and they're not trying to manipulate the system, there's a reason why they're entering it when they enter it. So we don't really wanna mess up whatever system they're using. For example, if it were a job cost system and they're entering this whenever they do their billing, which happens every two weeks or something like that, we don't wanna say, okay, we're just gonna pull that, we're gonna mess up your whole timing system so that we can pull that before the cutoff date. Instead, what we wanna do is pull over this whole transaction to February with a journal entry and adjusting journal entry and then make the financial statements correct as of the cutoff date and then we'll reverse it with a reversing entry so we don't mess up the accounting department.