**Bottom line:** The accrual schedule ties to the trial balance, but I'd resolve six items before you close. Two of them look like potential misstatements.

## Tie-out

| Account | Schedule Dec | TB Dec | Diff | Schedule Nov | TB Nov |
|---|---|---|---|---|---|
| 2100 Accrued expenses | 90,533.68 | 90,533.68 | 0.00 | 65,662.70 | 65,662.70 |
| 2110 Accrued freight | 42,701.30 | 42,701.30 | 0.00 | 31,202.25 | 31,202.25 |

I also recomputed AC-09 (term loan interest). Half a month at 6.75% on the 552,000 TB balance gives 1,552.50. November on 556,000 gives 1,563.75. Both match.

## Items to resolve

**Likely errors**
1. **AC-14, Coastline fuel surcharge, 6,310.20.** The schedule shows the invoice as received. If it's already in AP (2000), this is a double count. If it isn't, it should be vouchered and taken off the accrual.
2. **AC-16, Tallgrass inbound freight, 6,330.00.** The note says these are pre-buy receipts.
   - Inbound freight on inventory belongs in inventory cost, not in a period expense.
   - Account 2050 (GRNI) is a **44,980.35 debit** at December, against a 18,420.15 credit in November. A debit balance on a liability means receipts and invoices are out of sync. The pre-buy receipts may be involved.
   - Check that the freight isn't also in GRNI or the vendor invoice.

**Support or cutoff**
3. **AC-06, Summit racking repair, 7,600.00.** The accrual rests on a PO and the note says the repair was "ordered." A PO alone doesn't create a liability. Accrue only the work completed by 12/31, and confirm the completion date.
4. **AC-07, Lanternfly design milestone, 5,400.00.** There's no support reference. It's been open two months at the same amount, so I can't tell whether the milestone was delivered. Get the PO or SOW and the delivery evidence.
5. **AC-01, Harlow and Finch legal, 12,500.00.** It's open seven months at a flat estimate that never reverses (Reverses = N). It's stale. Get a current status letter or billing from counsel and true it up.

**Reasonableness (support exists, but the change is large)**
6. **AC-05, Palmetto labour, 9,842.60, up 134% from November.** The description says "last two weeks" either way. Check the timesheets for a rate or headcount change, or a month that includes overtime or peak-season hours.

Other increases look explainable but are worth a quick look:
- AC-02 audit: doubled to 18,000, which fits the second interim visit in the engagement letter.
- AC-11 CAM: up 46%, from a landlord estimate.
- AC-15 parcel: up 37%.
- AC-13 freight and AC-14 fuel surcharge: up 25%. The surcharge is 33.9% of freight in both months, so the two are consistent with each other.

## Outside these two accounts
- **2150 Sales tax payable** is 91,760.00, up from 23,415.20 in November and 21,984.60 a year ago. That's roughly four times normal. It may be a missed remittance or a posting error.
- Neither file shows what 2120 (accrued payroll) is made of, and I didn't test it.

I haven't proposed any adjusting entries. Once you confirm the facts on items 1–4, I can draft them.