Sarah is the accounting manager and part of her job is responsible for preparing the companys adjusted trial balance from which the financial statements will be prepared. Her supervisor, placed a firm deadline of Friday for the completion of the adjusted trial balance. Unfortunately, she was not able to get the trial balance to balance by the due date. The credit side of the trial balance exceeded the debit side, to meet the deadline, she decided to add debit to the vehicles account balance. She selected the vehicles account because it will not be significantly affected by the additional amount.

Please explain in sentences

1. Did Sarah behave ethically? On which accounting principles or assumptions do you base your answer? Please discuss.

2. Who is affected by Sarahs decision? How will they be impacted? Please discuss.

3. How should Sarah have handled this situation?