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

  Omegas taxable income for the current year

What is Omega's taxable income for the current year, assuming qualified production activities income is $20,000?

  Journal entries of raptor corporation

On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year o..

  Calculate the total amount of capital gain

Sophia inherited 1,000 shares of IBM. The father's cost was $2 per share at the time of purchase and 484 per share at the time of his death. Sophia sold them at $86 per share. Calculate the total amount of her capital gain.

  What is a pro forma figure indicating

What is the asset represented by share of capital stock that have not yet been issued?

  Indicating appropriate income tax allocation

Develop a memo to Texaco Inc’s chief accountant indicating the appropriate income tax allocation required for the above items, comprising the appropriate balance sheet presentation.

  Product launch expected value

Brain Drain is about to launch a new product. Depending on the success of the new product, there are three possible outcomes for value next year-What is Brain's total value with leverage?

  Find difference between top down and bottom up budgeting

What is the difference between top down and bottom up budgeting? Under what circumstances might one approach be preferred to the other?

  Perpetual bond and zero-coupon bond

If a Perpetual bond yields 5% and makes an equal payment each year; which has the longer duration - a perpetual bond or a 15-year zero-coupon bond?

  Determine the cost recovery deduction

Determine the cost recovery deduction for 2012 for these assets.

  Analysis of rate of return

Create a formula to calculate your rate of return for each year. What is your overall return over the life of your investment? What is the average annual return over the life of the investment? Use the geomean function.

  Estimating bond valuation

You wish to purchase a 20-year, $1,000 face balue bond that makes semiannual interest payments of $40. If you require a 10% nominal yield to maturity, what price should you be willing to pay for the bond?

  Operating income under absorption versus variable costing

Precision Numbers, Inc., manufactures pocket calculators. Costs incurred in making 25,000 calculators in April included $85,000 of fixed manufacturing overhead. The total absorption cost per calculator was $12.50.

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