A large company has hired your friend. She confides in you about a problem with...
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Accounting
A large company has hired your friend. She confides in you about a problem with her boss. Her boss has asked customers to sign sales agreements just before the end of the year, indicating a sale has been made. Her boss has told these customers that he will give them 30 days, which is well into Page 524next year, to change their minds. If they do not change their minds, then he will send the merchandise to them. If they do change their minds, her boss has agreed to cancel the orders, take back the merchandise, and cancel the invoices. Her boss has given the sales agreements to the Accounting Department, which has prepared invoices and recorded the sales. One of the people in accounting is keeping the invoices and shipping documents for these customers in a desk drawer either until the customers change their minds, in which case the sale will be canceled, or until the merchandise is sent at the end of the 30-day waiting period.
When a [post like this is made, what is the offsetting entry?How would they record cost of goods sold?
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