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Chingamook Awnings Corp. discovered that there was a reporting error in the shop supplies account totaling between $5,000 and 513,500. They see they have two
Chingamook Awnings Corp. discovered that there was a reporting error in the shop supplies account totaling between $5,000 and 513,500. They see they have two options: spend about $35,000 to perform the detailed analysis to come up with the exact amount of the error or record an adjustment of $13.500 to correct the error. What should Chingamook do? Select one a. Find the correct amount because the amount is material, b. Find the correct amount to increase the understandability of the financial statements. Find the correct amount so that the balance is free from error, d. Record the adjustment because the amount will be presented in a timely manner. e. Record the adjustment because the cost to determine the correct amount outweighs the benefit Next
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