Analyze the accounting issues for the march 2021 quartely report. Provide your reconmanndation and analyze the impact on the march 31, 2021 quartely financial report.

Accounts payable for previous periods included an accrual of $180,000 related to a disputed payable to a supplier. The supplier initially sued Tesla for payment, and Tesla responded with a countersuit. The working file indicates that the dispute has been ongoing for about three years, and Tesla came close to going to court on a few occasions but the date was delayed due to procedural details. The CFO had worked diligently to reach a settlement. On the March 31 statements, Tesla reduced the accrual to $80,000, representing the actual settlement amount and the related legal costs. The $100,000 difference was taken into March's income. The file includes documents, signed by the CFO on behalf of Tesla, indicating that he finally paid the settlement amount out of court on April 25, 2021. Page 6 of 9