I reviewed all 16 accruals. The December total is **$133,235**, up $36,370 (+37.5%) from November. Most of the rise comes from the audit accrual, a new racking repair, temporary labour and freight. Two items need correcting before close, and four more need evidence before they can be signed off.

| Account | Dec | Nov | Change |
|---|---|---|---|
| 2100 Accrued expenses | 90,533.68 | 65,662.70 | +24,870.98 |
| 2110 Accrued freight | 42,701.30 | 31,202.25 | +11,499.05 |
| **Total** | **133,234.98** | **96,864.95** | **+36,370.03** |

## Fix before close

1. **AC-14 Coastline Carriers fuel surcharge ($6,310.20): the invoice has already arrived** (`invoice_received = Y`, ref CARRIER-INVOICE-DEC). It should be entered in accounts payable and taken out of accruals. Otherwise the $6.3k liability is counted twice once the invoice is posted. Also check that AC-13, the other Coastline accrual, doesn't include amounts on that same invoice.
2. **AC-16 Tallgrass inbound freight ($6,330.00): check which account the expense was posted to.** Inbound freight on inventory receipts is normally part of inventory cost, not a period expense. That matters here because the accrual more than doubled (+$3,462) due to receipts bought early to beat the January price increase. The liability itself looks fine.

## Need evidence before sign-off

3. **AC-01 Harlow and Finch legal ($12,500.00): looks stale.** It's an estimate that has stayed exactly the same for 7 months, with no invoice. It's also the only accrual that doesn't reverse each month, so the $12,500 balance has simply been carried forward. A lease dispute that is still running usually builds up new fees each month. Get an updated fee estimate from Harlow and Finch (ideally also covering the case status for the lawsuit disclosure assessment), then true it up.
4. **AC-07 Lanternfly Creative ($5,400.00): no supporting document.** The basis is a purchase order, but `support_ref` is blank. It's been open 2 months with no invoice and hasn't changed. Get the PO number and proof that the first milestone was actually delivered. If it hasn't been delivered, there's nothing owed yet and this should be reversed.
5. **AC-06 Summit racking repair ($7,600.00, new): confirm the work was done by Dec 31.** A purchase order shows the repair was ordered, not that it was performed. Also check whether this is a routine repair (expense) or an improvement that should be capitalised.
6. **AC-02 Brightline audit ($18,000.00, doubled): confirm that neither interim visit has been invoiced yet.** The engagement letter supports the second visit in December. But because the accrual reverses and is rebuilt each month, $18k means neither visit has been billed. If the first one has, this is overstated by $9k.

## Larger changes worth a quick check

- **AC-05 Palmetto temp labour, +$5,629 (+134%).** Tie it to the December timesheets. The description says "last two weeks", so make sure the period lines up with what's already been invoiced.
- **AC-13 / AC-15 outbound and parcel freight, +$3,719 / +$3,068 (+25% / +37%).** A holiday-season increase is plausible. Spot-check them against the carrier log and the parcel shipping list. The +25% rise in the fuel surcharge (AC-14) matches the rise in freight, which supports the figures.
- **AC-11 Kingsley common-area charges, +$2,130, open 3 months.** This is the landlord's fourth-quarter estimate. Compare it with any reconciliation the landlord has already sent.

## Look reasonable

AC-03 power, AC-04 software licences, AC-08 telecom, AC-09 loan interest (slightly lower, consistent with the loan being paid down), AC-10 health premium and AC-12 waste removal. Each has a support reference, reverses monthly, and moved only slightly from November.

**Owners to follow up with:** Tomas Herrera (AC-06, 13, 14, 15, 16), Dana Whitfield (AC-01, 02, 11), Elena Brandt (AC-07) and Marcus Oyelaran (AC-05).