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Homework 7.38

19/09/2020 Client: felana45 Deadline: 10 Days

  


· Book: Forensic and Investigative Accounting


· Please answer the questions listed below and submit in a word document.  


The Dirty Accountant? Logan Johnson is a recent graduate of MidUniversity’s accounting program. She has begun her work as the accountant for Platinum Automotive run by Joe and Tom Younger. Platinum has a series of car lots where they sell top-end “previous driven” cars in Baltimore, Maryland. On February 6, 2011, Joe Younger sold a 2010 BMW X3, 3.01 SUV for $38,000. Logan entered the following entry into the accounting database for the sale:


Feb. 6, 2011  Cash    9,800


Note Receivable      28,200


BMW X3      38,000


Logan thought nothing of the sale. On February 10, Joe Younger dropped off documentation that showed $9,900 of the loan had been paid off. Logan booked the proper entries. On February 15 and again on February 20, documentation showed that the loan was being repaid and paid off with payments of $9,500 and $8,800, respectively. Shortly afterward, Logan received an envelope with $250 in cash on her desk. On the front of the envelope, the word “bonus” was written. Logan is happy that her work is being favorably recognized by the owners.


Do you have any advice for Logan?

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