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FOR MORE CLASSES VISIT<br>www.tutorialoutlet.com<br><br><br>You have worked with Zaird & Associates, CPAs, for a little more than a year and are beginning your second audit of Universal Air (UA). This year you even have an assistant reporting to you—Jane McClain.<br>Jane has come to you with a concern. She noticed that when sales are “booked†over the internet an entry is made debiting a receivable account (from the credit card) and crediting sales. When a ticket is canceled, the only entry made is to a database that maintains specific flight information on seat availability. Jane has discovered that customers are emailed a “Canceled Reservation†form when this occurs. But no accounting journal entry is recorded, and no refund occurs until the customer requests (in writing) a refund. If the customer never requests the refund, the receivable is billed to the credit card and collected; when it is billed to the credit card, many customers complain and are given a refund, with an accompanying journal entry being made for the cancellation.<br>
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You have worked with Zaird & tutorialoutlet.com You have worked with Zaird & Associates, CPAs, for a little more than a year and are beginning your second audit of Universal Air (UA) FOR MORE CLASSES VISIT www.tutorialoutlet.com You have worked with Zaird & Associates, CPAs, for a little more than a year and are beginning your second audit of Universal Air (UA). This year you even have an assistant reporting to you—Jane McClain. Jane has come to you with a concern. She noticed that when sales are “booked” over the internet an entry is made debiting a receivable account (from the credit card) and crediting sales.
