Your client is All's Fair Appliance Company, an appliance wholesaler. Select the most appropriate audit procedure from the following list and enter the number in the appropriate place on the grid. Provide a brief explanation of how the audit procedure would support the assertion you select. An audit procedure may be selected once, more than once, or not at all. The audit procedures are:

1. Review of bank confirmations and loan agreements

2. Review of drafts of the financial statements

3. Selection of a sample of revenue transactions and determination that they have been included in the sales journal and accounts receivable subsidiary ledger.

4. Selection of a sample of shipping documents for a few days before and after year-end.

5. Confirmation of accounts receivable

6. Review of aging of accounts receivable with the credit manager.