You work in a company that has begun selling annual subscriptions to its new online magazine. During December, the company sold the first subscriptions, receiving $600,000, which represents one-fifth of its revenues from all sources for the year. The entire amount has been collected in cash. As the end of the the year approaches, you notice that the company recorded the entire $600,000 to revenue and there is no plan to make an adjusting entry. Task: Following this Memo Template Download Memo Template, draft a memo to your supervisor, which explains the following: The accounting error that has been made The effect this error will have on the financial statements dated at the end of December The problems that might result The importance of fixing the error and what needs to be done to fix the error. The accounting error that has been made The effect this error will have on the financial statements dated at the end of December The problems that might result The importance of fixing the error and what needs to be done to fix the error

[Introduction: Write a brief, 1-sentence introduction explaining your purpose in writing this memo to your supervisor.] [Body Paragraph 1: Include details about the error and the effects this error will have on the December 31 financial statementsinclude how the error will affect the Income Statement, the Statement of Retained Earnings, and the Balance Sheet.] [Body Paragraph 2: Explain any other problems that might result from this error. Think about taxes, next years financial statements, external users of their financial information, audits, etc.] [Conclusion: Conclude with your solution to fixing the error. Emphasize the importance of fixing this error.]