Question - Rosario, a recent UMA graduate, is currently working for Dr. Shaw, who owns a small medical practice. Since it's a small office, Rosario is often asked to take on additional tasks when other staff members are out sick or on vacation. When Debbie, Rosario's co-worker, counted on October 1, office supplies totaled $8,000.00. Today, October 31, Rosario counts $3,000 of office supplies.
1. Do you think an adjusting entry is necessary in this situation? Why or why not?
2. What are the possible repercussions for the office if Rosario does not calculate the entry properly?
3. Who should be held liable for any problems due to adjusting errors?