**Summary:** both accrual balances tie to the trial balance, but I found several items to resolve before close. I only reviewed the two files and made no changes.

## Tie-out

| Account | Accrual detail Dec | TB Dec | Diff | Nov detail vs TB |
|---|---|---|---|---|
| 2100 Accrued expenses (AC-01 to 12) | 90,533.68 | 90,533.68 | 0.00 | 65,662.70 = 65,662.70 |
| 2110 Accrued freight (AC-13 to 16) | 42,701.30 | 42,701.30 | 0.00 | 31,202.25 = 31,202.25 |

## Items to resolve

1. **AC-14, Coastline fuel surcharge (6,310.20): the invoice has been received.** `invoice_received = Y`, so it should be in AP (2000), not accrued. If it's already in AP, the accrual is a double count. Please also confirm it doesn't overlap with AC-13, the other Coastline accrual for unbilled December shipments (18,640.35).
2. **AC-01, Harlow and Finch legal (12,500.00): stale.** The estimate is flat from November, has been open 7 months, and has `reverses = N`. It has never been trued up to billed or actual fees. Ask Dana Whitfield for current counsel status and update or release it.
3. **AC-07, Lanternfly Creative (5,400.00): no support.** `support_ref` is blank, the accrual has been open 2 months and no invoice has arrived. Confirm the milestone was delivered in 2025. If it wasn't, the expense belongs in 2026.
4. **AC-06, Summit racking repair (7,600.00): possibly not incurred.** The support is 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.
5. **AC-16, Tallgrass inbound freight (6,330.00): classification.**
   - Inbound freight on year-end receipts is normally capitalized to inventory, not expensed. Check where the offset was booked.
   - Account 2050 (GRNI) has a **debit** balance of 44,980.35, but its normal balance is credit, and it was a 18,420.15 credit in November. That's a swing of about 63k and needs investigating. It may be tied to the year-end pre-buy receipts.
6. **AC-15, Swiftway parcel (11,420.75): check the cut-off.** The description says "last week of December," yet it is 37% above November's accrual. Confirm the manifest covers only unbilled days and doesn't overlap with invoiced shipments.
7. **Lower-risk increases to confirm:**
   - AC-11 CAM (+46%, 4,620 to 6,750): check against the landlord's Q4 estimate.
   - AC-05 temp labour (+134%): check against the timesheets.
   - AC-02 audit (doubled to 18,000): consistent with the engagement letter note, assuming the 9,000 first-visit accrual reversed.

## Outside the accrual file, but visible in the TB

- 2150 Sales tax payable jumped from 23,415 to 91,760 in one month. That is probably a December filing or timing issue, so please confirm.
- 2120 Accrued payroll (71,906.80) has no detail in this file, so I couldn't review it.

If you want, I can quantify the potential adjustments (AC-14 and AC-06 are the clearest) and draft the proposed entries.