Ava Borzi is the new controller for Halo Software, Inc., which develops and sells education software. Shortly
Question:
Persuade suppliers to postpone billing $18,000 in invoices until January 1.
Record as sales $120,000 in certain software awaiting sale that is held in a public warehouse.
Delay the year-end closing a few days into January of the next year so that some of next year’s sales are included as this year’s sales.
Reduce the estimated Bad debt expense from 3% of Sales revenue to 2%, given the company’s continued strong performance.
Postpone routine monthly maintenance expenditures from December to January.
Requirements
1. Which of these suggested strategies are inconsistent with IMA standards?
2. What should Borzi do if Busch insists that she follow all of these suggestions?
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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