What should milley do, Jonathan Milley, the accountant for

What should milley do

Assignment Help Accounting Basics

Reference no: EM13127318

Jonathan Milley, the accountant for Bling Sound, Inc. has just completed a review of the General Ledger and is about to begin 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 finds 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. Current reported sales are $175,000.

At the meeting, Milley explains that the receivable has not been recorded on the books and that he will correct that in an adjusting entry. Cantsing asks that Milley does not record the outstanding receivable. He explains that the head of GGG Studios has filed for bankruptcy and there is not chance of collection. Cantsing believes that including the receivable and sale on the financial statements would not be a valid representations of last year's operations.

What should Milley do?

Reference no: EM13127318

Questions Cloud

Find probability that defect came with first shipment : The shelf and purchases it, and he later discovers that the lamp he purchased is defective. What is the probability that the defect came with the first shipment?

How many days does it take for light to travel : A star is 3.28 x 1014 km from Earth. How many days does it take for light to travel from the star to Earth?

Planning to construct expanded facilities : Dean manufacturing is planning to construct expanded facilities and will finance a portion of its new plant with proceeds from the sale of its current plant.

What are complex numbers : What are complex numbers? What does imaginary parts of equal magnitude and opposite signs mean? What is the quadratic formula? What is it used for? Provide a useful example.

What should milley do : Jonathan Milley, the accountant for Bling Sound, Inc. has just completed a review of the General Ledger and is about to begin the adjusting process. His boss, Cantsing has asked to speak to him concerning an outstanding accounts receivable from GG..

Sketch sampling distribution and put in region of rejection : Assume H- to be true. What is the probability that this decision strategy will result in a type I error. Sketch the sampling distribution and put in the region of rejection?

What is amount of dividends common shareholders : The board of directors of Dell declared cash dividends of $70,000 in 2011 after paying $40,000 cash dividends in 2010 and $50,000 in 2009.

How many milliliters of water is required : Using the formula W = mg, how many milliliters of water with a density of 1g/mL are required to weigh 0.75 newtons and g = 9.81 m/s2?

Compute expected number of tests necessary for entire group : Assume the probability that a person has the desease is 0.09 for all people, independently of each other, and compute the expected number of tests necessary for the entire group of 154 people.

User Account

All Pages