EI$31$ The net income of EZ Furniture decreased sharply during $2023.$ Mariah Tessier, owner of the store, anticipates the need for a bank loan in $2024.$ Late in $2023,$ she instructs the accountant to record a $$35,000$ sale of furniture to the Tessier family, even though the goods will not be shipped from the manufacturer until January $2024.$ Tessier also tells the accountant not to make the following December $31,2023,$ adjusting entries:

Salaries owed to employees...........................................

$$27,000$

Prepaid insurance that has expired.................................

$1,500$

Required

Compute the overall effect of these transactions on the store$$s reported income for $2023.$

Why did Tessier take this action? Is this action ethical? Give your reason, identifying the parties helped and the parties harmed by Tessier$$s action.

As a personal friend, what advice would you give to the accountant?