through D) that it best describes and place the identifying letter in the space provided. A. Embezzlement or defalcation B. Management fraud C. Errors D. Employee fraud ____ 1. A bookkeeper inadvertently transposed an amount in a journal entry for amortization. __ 2. An employee in a supermarket takes home bags of fresh fruit every day without paying for them. ____ 3. Embezzlement by pencil or computer. ____ 4. A type of fraud in which employees steal money or property that has been entrusted to their care. ____ 5. The controller changed the journal entry for recording estimated bad debt expense to a smaller amount to hide the poor results from extending credit to high risk customers. This action increased recorded income by a material amount.