I reviewed the December accruals against the trial balance. The schedule ties to the TB exactly: account 2100 (accrued expenses) totals $90,533.68 and account 2110 (accrued freight) totals $42,701.30, and the November totals also match. The TB balances to zero for every period. Even so, several accruals and one TB balance need resolving before close.

## Fix before close

1. **AC-14 Coastline fuel surcharge, $6,310.20.** The schedule shows the invoice as received (`invoice_received = Y`). It should be in accounts payable, not accrued. If it's already in AP, this is counted twice and the accrual should be reversed.
2. **AC-07 Lanternfly Creative, $5,400.** This is the only line with no supporting document reference. It's booked on a purchase order basis at the same amount for two months, with no invoice. We need proof that the first milestone was delivered by 12/31; if it wasn't, release the accrual.
3. **AC-06 Summit racking repair, $7,600 (new).** The note says the repair was "ordered" after the inspection, but an order alone isn't an expense. Confirm the work was done in December. Also, utilities and maintenance (6110) rose only $3,330.69 in December, less than this accrual alone, so confirm which expense account it was booked to.
4. **AC-01 Harlow and Finch legal fees, $12,500.** The same estimate has been open for 7 months, doesn't reverse, and has no invoice. For year-end it needs an up-to-date estimate from counsel (or a legal letter). It's either stale or understated for a dispute that's still running.
5. **AC-16 Tallgrass inbound freight, $6,330.** Freight on inbound receipts is part of inventory cost, not freight expense. Confirm it was charged to inventory (1200), not to outbound freight (5300). It's also in the accrued freight account, which otherwise holds only outbound carriers.

## Questions for the accrual owners

- **AC-02 Brightline audit, $18,000 (up from $9,000).** Because it reverses monthly, December audit and legal fees (6400) should rise by at least $9,000. They rose only $5,810.38. Either there was an offsetting credit or the increase was charged to a different account. Check with Dana Whitfield.
- **AC-05 Palmetto Staffing, $9,842.60 (up from $4,213.80, 2.3×).** Check this against the December timesheets (Marcus Oyelaran).
- **AC-10 Clearwater health premium.** Insurance premiums are usually billed in advance. Confirm December wasn't already paid, so it isn't both accrued and paid.

## TB items outside the accrual schedule

- **2050 Goods received not invoiced has a debit balance of $44,980.35.** Its normal balance is a credit, and it moved $63,400.50 in December. This is probably linked to the year-end stock bought ahead of the January price increase (inventory rose $210k). It needs reconciling before close.
- **2150 Sales tax payable rose from $23.4k to $91.8k** in one month. Confirm this is real tax owed, not a misposting.

## Items that check out

- **AC-09 term loan interest:** the principal ($552k in December, $556k in November) × 6.75% ÷ 24 gives exactly $1,552.50 and $1,563.75.
- **The loan balances move as expected:** $4k is paid each month and the long-term balance fell $4k.
- **The other usage-based accruals** (AC-03, 04, 08, 11, 12, 13, 15) move in line with November and have supporting references.

I can only work from the TB balances, not individual journal entries. So the account mismatches in items 3 and AC-02 are leads for the owners to check, not confirmed errors.