Sale on the financial statements

Assignment Help Financial Accounting

Reference no: EM133722

Question :

Bling Sound, Inc. Case

Jonathan Milley, the accountant for Bling Sound, Inc. has just finished a review of the General Ledger and is about to start the adjusting process. His boss, Cantsing has asked to speak to him concerning an outstanding accounts receivable from GGG Studios.

Milley reviews the accounts receivable subsidiary ledger and locate no entry for a receivable from GGG Studios. A review of the customer invoices, shows that GGG Studios contracted for a composition and owes $15,000 to the company. Existing reported sales are $175,000.

At the meeting, Milley describes that the receivable has not been recorded on the books and that he may correct that in an adjusting entry. Cantsing asks that Milley does not record the outstanding receivable. He describers that the head of GGG Studios has filed for bankruptcy and there is no chance of collection. Canting believes that adding the receivable and sale on the financial statements would not be valid representations of last year's operations.

What should Milley do?

Reference no: EM133722

Questions Cloud

Evaluate the amount of clems expenses : Evaluate the amount of Clem's expenses that are deductible for AGI this year under the subsequent circumstances

What is your estimate of the present stock price : What is your estimate of the present stock price What is the target stock price in one year?

Determine the gross margin from the first sale : Determine the gross margin from the first sale

Explain concept of presence : a) When talking about unified communication there are two very important concepts that need to be understood- i. Concept of Presence ii. Single number reach Explain both of them in detail

Sale on the financial statements : Sale on the financial statements What should Milley do?

Discuss five services provided by satellite systems : Discuss five services provided by satellite systems Two of the frequency bands designations in common use for satellite services are Ku and L bands. What are these bands

Describe the asynchronous transfer mode (atm) protocol : Describe the Asynchronous Transfer Mode (ATM) protocol Different ATM Adaptation Layers (AALs) are defined for supporting different types of traffic or broadband services.

Determine the theoretical basis for the accounting standard : What criteria have to be met by the lease in order that Doherty Company classifies it as a capital lease? What criteria has to be met by the lease meet in order that Lambert Company categorize it as a sales-type or direct financing lease?

Evaluate and present the difference in eps and net income : Determine EPS under IFRS rules; Criticize and Defend IFRS Accounting; Evaluate and present the difference in EPS and Net Income between US GAAP and IFRS;

User Account

All Pages