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An accounting cycle period of a restaurant ended on a Tuesday at 5:00 p.m. eastern standard time (EST).
The following morning, the executive chef discovered eight food invoices that were not coded for a total of $1,971. The executive chef asks the accountant to reopen the period in order to adjust the food cost numbers.
How should the accountant respond?
1. Decline to reopen the books since the period had ended
2. Ask the executive chef to hold the invoices until mid-period for adjustments
3. Consult with the general manager and ask permission for a one-time exception
4. Verify with the external auditor that it is acceptable to reopen the period
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