1) Accounting Problem Solving It's May 8th, and you are currently working through the month end close for April You've been reviewing and reconciling all the credit card transactions for the previous month You see a large charge of $36,000 for a new vendor (Salesloft) you've not seen before charged on April 15th Unsure how to code this transaction, you reach out to the cardholder (CRO) to ask what the charge is for He responds, Salesloft is a new software engagement tool we purchased to help enable our sales and marketing teams to operate more efficiently Being that you are very thorough, you request for him to send you over the signed contract so you may properly review the contract details and record this transaction The contract includes the following details Subscription Fees $33,000 Implementation Fees $2,000 Sales tax $1,000 Subscription Term and Start Date 12 months, February 10, 2023 February 9, 2024 License Quantity 24 Payment Terms Annually in advance, by credit card, net 60 You realize that the company has missed recording this purchase back when the deal was signed, and all previous months books have been closed and published You roll up your sleeves knowing that you now need to fix this error Please Walk through the step by step process and accounting entries you would make to fix this error Please include amounts, GL accounts, memos, and dates of these entries Please note any further communication you would need or like to have with any member of the team Provide at least one procurement policy improvement suggestion 4 Anything not explicitly called out in this prompt you are encouraged to make assumptions on based on your experience Please document your assumptions 5 Feel free to notate any thoughts you may have

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1) Accounting Problem Solving It's May 8th, and you are currently working through the month-end close for April. You've been reviewing and reconciling all the

1)Accounting Problem Solving

It's May 8th, and you are currently working through the month-end close for April. You've been reviewing and reconciling all the credit card transactions for the previous month. You see a large charge of $36,000 for a new vendor (Salesloft) you've not seen before charged on April 15th. Unsure how to code this transaction, you reach out to the cardholder (CRO) to ask what the charge is for. He responds, "Salesloft is a new software engagement tool we purchased to help enable our sales and marketing teams to operate more efficiently." Being that you are very thorough, you request for him to send you over the signed contract so you may properly review the contract details and record this transaction. The contract includes the following details:

Subscription Fees: $33,000
Implementation Fees: $2,000
Sales tax: $1,000
Subscription Term and Start Date: 12 months, February 10, 2023 - February 9, 2024
License Quantity: 24
Payment Terms: Annually in advance, by credit card, net 60

You realize that the company has missed recording this purchase back when the deal was signed, and all previous months* books have been closed and published. You roll up your sleeves knowing that you now need to fix this error.

Please:

Walk through the step-by-step process and accounting entries you would make to fix this error. Please include amounts, GL accounts, memos, and dates of these entries.
Please note any further communication you would need or like to have with any member of the team
Provide at least one procurement policy improvement suggestion

4. Anything not explicitly called out in this prompt you are encouraged to make assumptions on based on your experience. Please document your assumptions.

5. Feel free to notate any thoughts you may have.