Question
Tau Retail is suspected of manipulating their sales figures. The income statement reports $3,200,000 in sales, but the sales ledger shows $2,800,000. There are $150,000
Tau Retail is suspected of manipulating their sales figures. The income statement reports $3,200,000 in sales, but the sales ledger shows $2,800,000. There are $150,000 in sales returns not recorded and $100,000 in fictitious sales.
Requirement: Determine the correct sales figures and discuss the impact of sales manipulation on financial performance.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
