Question: There is a mini case below, please state the financial reporting error and provide a solution. The industry standard for shoe returns is 20 days,

There is a mini case below, please state the financial reporting error and provide a solution.

The industry standard for shoe returns is 20 days, subject to a 10% restocking fee. NIKE is using these same terms for the new super shoes At December 31, 2019 there were $500,00 sales of these shoes that were still under the refund return period. NIKE only started selling these shoes in October of this year and as such still does not have an estimate of the amount of returns. Currently, no accounting has been done regarding potential returns of these lights.

What is the financial reporting error? Please provide a solution to this error.

Step by Step Solution

★★★★★

3.37 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Common Errors in Financial Reporting are 1 Error of Ommission i Financial Transactions which are omitted not Recorded in Financial Statements this typ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

There is a mini case below, please state one financial reporting error and provide a solution. NIKE is concerned that their current method of selling lights with an ATTACHED warranty is lowering...

A foreign subsidiary does not have an independent cost of capital.

Bob owns and operates a mechanics workshop. During the year ended 30 June 2021 he incurred the following expenditure: 15 July 2020 1 December 2020 10 February 2021 18 March 2021 1 April 2021 Replace...

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in thousands): sales revenue, $15,300; cost...

Study each of the following case carefully. Briefly state the principle of law and your decision. Garafolo was employed as a salesclerk at a liquor store. An armed robber entered the store one day...

Layne Corporation, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2019: Inventory at December 31, 2019 (based on...

Liability Entries and Adjustments Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the...

New York Pool Supplies's merchandise inventory data for the year ended December 31, 2019, follow: Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $1,800....

The current assets and current liabilities of JAE Company on December 31, 2019 and 2018, are as follows. The corporations net income for 2019 was $50,000. Included in its expenses was depreciation of...

Olson Companys bookkeeper prepared the following income statement and retained earnings statement for the year ended December 31, 2019: The preceding account balances are correct but have been...

(a) What is the mass defect of the 1H atom due to the binding energy of the electron (in the ground state)? (b) Should we worry about this mass defect when we calculate the mass of the 1H nucleus by...

A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 50,000 km a year, with a useful life of 3 years for the taxi with the gas engine...

rted: Aug 1 6 at 1 1 : 1 5 am uiz Instructions Question 4 7 1 pts Bradley is a new employee in the sales department at a local car dealership. In his first few months on the job, he will be learning...

Solve the following using lim of infinity to prove: 1)Prove that n^2 is in Theta(n^2 + 20 n) 2) Prove that n log n is in Omega (100 n) 3) Prove that n^2 is in O(0.01 n^3)

A project with an up-front cost at t = 0 of $1500 is being considered by Nationwide Pharmaceutical Corporation (NPC). (All dollars in this problem are in thousands.) The project's subsequent cash...

1) A company has the following accounts receivable and estimates of uncollectible accounts: 1. Accounts not yet due = $60,000; estimated uncollectible = 3%. 2. Accounts 1-30 days past due = $20,000;...

The Covid Corporation is a local distillery that produces whiskey, which it sells in the intermediate market. The following information is available about their whiskey (pricing is per batch)...

Discuss three mistakes you have experienced or witnessed in the workplace In my current role, as a people manager, I have faced a multitude of mistakes in my work environment. In this discussion post...

________ polymerase synthesizes Okazaki fragments discontinuously on the _____________ strand. Group of answer choices DNA; leading DNA; lagging RNA; leading RNA; lagging

expected to be repeat customers Page 808 MINI CASE Piepkorn Manufacturing Working Capital Management You have recently been hired by Piepkorn Manufacturing to work in the newly established treasury...

Read the Chapter 15 Mini Case on page 626 in Financial Management: Theory and Practice . Using complete sentences and academic vocabulary, please answer questions a and b. Using the mini case...

There are answers with "Answer: See Chapter 9 Mini Case Show" so i need the answer for all those questions please. Thanks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29...

7 Jenny Cochran, a graduate of The University of Tennessee with 4 years of experience as an equities analyst, was recently brought in as 8 assistant to the chairman of the board of Computron...

Required information In this mon case you will enate andormation related to your client - Apollo Shoes to determine audit risk Instructions Auditors are tasked with gathering a wide variety of...

For the Teal Tractors Mini Case, if the Teal Tractors buys the Canadian Tractor company after the software development is already finished, please draw the resulting evolution tree. Evolution-Tree...