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.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entries for partnership profits

Prepare the journal entry(s) and defend your reasoning process for the admission of Flint to the partnership assuming Flint invested $400,000 for the ownership interest. Flint paid the money directly to Chang and to Danos for 50% of each of their ..

  Determine the bad debt expense

Spock Corporation's unadjusted trial balance at Dec 31, 2007, included the following accounts. Spock Corporation estimates its bad debt expense to be 1.5% of net sales.

  Planning functions of controllership

Why is essential that the planning functions of controllership can help an organization effectively and efficiently achieve a goal?

  Is an investor always better off buying tax exempt bonds

Under what conditions is an accrual-basis-tax-payer allowed to defer reporting amounts received in the advance payments received for services?

  Present value-an important concept for management

Why do you think present value is an important concept for management to understand? Do you think it should be used for all financial statements items, why or why not?

  What accounts are likely to be overstated or understated

Your client, a manufacturer of computer components has experienced slowing demand for its product. Recently, it cut back from three shifts a day to two shifts a day and the company has eliminated the backlog of orders that existed in prior years b..

  How do you value the obsolete inventory

There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?

  Prepare a statement of cash flows using the indirect method

Prepare a statement of cash flows using the indirect method.

  How many units are in ending work in process

In Saint-Simon, Inc., the Assembly Department started 18,000 units and completed 21,000 units. If beginning work in process was 9,000 units, how many units are in ending work in process?

  Explain forecasts upcoming sales

Assume that the brand manager forecasts upcoming sales of SUSI to be 150,000 units, and that there are 35,000 units of SUSI in inventory

  Calculate the budgeted manufacturing overhead rate

Waheed Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour.

  Determining incremental analysis

Prepare an incremental analysis for the special order and should Pro Sports Inc. accept the special order? Explain your answer. What is the minimum selling price on the special order to produce net income of $4.10 per ball?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd