Problem
Jill Smith is the head bookkeeper for Company A, a consulting company for individuals and small businesses. As part of herjob,Jill is responsible for preparing the company's trial balance. Her supervisor placed a "hard deadline" of Friday at 5 pm for the completion of the trial balance. Unfortunately, Jill was unable to get the trial balance to balance by the due date. The debit side of the trial balance exceeded the credit side by $4,500. To make the deadline, Jill decided to add a $4,500 credit to the revenues account balance. She selected the revenues account because it will not negatively affect the financial position of the company.
Is Jill behaving ethically? Why? Who is affected by Jill's decision? How should Jill have handled this situation? Can you use real world experiences or chapter 2 information?