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You Are the Accountant for Klemmer Corporation

question 211

Essay

You are the accountant for Klemmer Corporation. At the company's year end, December 31, 2020, you discover there is an amount of $30,000 that has been earned by Klemmer but not yet billed to its customers by the year end. Laura Klemmer, the owner, tells you not to bill the customers as it is company policy not to bill customers until February 2020, well after the Christmas holidays. Klemmer has sales staff that are paid a bonus at year end on sales revenue billed.
-Describe the relationship between sales (or revenues), expenses, and profit.


Definitions:

Hazardous Waste Regulations

Rules established by environmental agencies that govern the handling, storage, treatment, and disposal of wastes that pose substantial or potential threats to public health or the environment.

Resource Conservation and Recovery Act

A United States federal law that gives the Environmental Protection Agency (EPA) the authority to control hazardous waste from the "cradle-to-grave," including the generation, transportation, treatment, storage, and disposal of hazardous waste.

Toxic Substances Control Act

A United States law enacted in 1976 designed to regulate the introduction of new or already existing chemicals.

Agricultural Chemicals

Substances used in farming to enhance growth and productivity, including fertilizers, herbicides, and pesticides.

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