DQ 3 - Chapter 3 Discussion. After reading the text, viewing the PowerPoint slides and reading the notes, consider the following: - Bell Farm and Garden Equipment reported the following information for Year 2: Selected information from the balance sheet as of December 31, Year 2: Assume that a major customer returned a large order to Bell on December 31 , Year 2. The amount of the sale had been $146,800 with a cost of sales of $94,623. The return was recorded on January 1 , Year 3 . The company president does not want to correct the books. He argues that it makes no difference as to whether the return is recorded in Year 2 or Year 3 . Either way, the return has been duly recognized. Assume you are the CFO for the company. Write a memo to the president explaining how omitting the entry on December 31 , Year 2 , could cause the financial statements to be misleading to investors and creditors. Explain how omitting the return from the customer would affect net income and the balance sheet