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A manager of a firm signs an agreement with a vendor. He agrees to pay $20,000 for ads running during the month of January. On January 25th, he receives the bill for $20,000, and it%u2019s still sitting on his desk on January 31st. Class, let%u2019s say that we were examining the accounting records for a client. We see several cash transactions on the bank statement for $5,000. The owner explains that these transactions were to pay a vendor. However, there is no purchase order or vendor invoice. How should we proceed?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9962248

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