You Are the Accountant for Klemmer Corporation

question 127

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.
-What account(s) is (are) affected by not recording the transaction? Identify the account(s) as an asset, liability, revenue or expense.

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Definitions:

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger, thereby influencing body weight and fat mass.

Biology Of Body Weight

The study of biological factors, such as genetics, metabolism, and hormone function, that influence body weight.

Set Point Theory

A theory suggesting that individuals have a genetically determined range of weight and temperature that their body regulates to maintain.

Dieting

The practice of eating food in a regulated manner to achieve or maintain a controlled weight.