Question: Late in 2021, a bug was discovered in a software product that was installed for several of your company's clients. Although the bug was not

Late in 2021, a “bug” was discovered in a software product that was installed for several of your company's clients. Although the bug was not your company's fault, the CEO of the company feels strongly that company software engineers should assist the clients with a programming solution since the company recommended the software. Clients will be contacted early in 2022 and should have fixes in place for all those affected by the end of the first quarter of 2022. The estimated cost is $7,000.
Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.

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