Question
Required journal entries for this event: On 3 March 2021, a vendor for the cybersecurity company billed Mildred Ltd $500,000 for some cybersecurity development work
Required journal entries for this event:
On 3 March 2021, a vendor for the cybersecurity company billed Mildred Ltd $500,000 for some cybersecurity development work rendered for Mildred Ltd. However, Mildred Ltd disputed this invoice claiming that the vendor had breached some of the terms of the contract signed between them. The vendor then sued Mildred Ltd for non-payment of their bill issued to Mildred. Mildred Ltd counter-sued the vendor for breaching the terms of the contract. The directors of Mildred Ltd estimated that the value of work done by this vendor as at 31 May 2021 was only $100,000. This case is still pending hearing by the Court which is scheduled to be held in September 2021.
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