Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Danielle is in charge of the $250 petty cash for Young's Auto Repair. When an employee needs a special part that is not in the

Danielle is in charge of the $250 petty cash for Young's Auto Repair. When an employee needs a special part that is not in the inventory, Danielle takes money from the petty cash to buy the part. One day, Danielle is short of cash and needs lunch money. She decides to borrow $15 that she will pay back on payday. Payday is in three days. Danielle continues this practice for three days for a total of $45. She does not have enough to pay the petty cash on payday. When she reconciles the petty cash, she records the $45 as a cash short/over expense. This is the first time she has done this. Requirement1: Are Danielle's actions ethical? Requirement 2: What should Danielle do to fix this problem if there is one? Requirement 3: Is there an Accounting Policy the business could have put into practice that may would have prevented Danielle from borrowing the money?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: Kermit Larson, Heidi Dieckmann

15th Canadian Edition

1259087360, 9781259087363

Students also viewed these Accounting questions