A client heard through its hotline that John, the purchases journal clerk, periodically en- ters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier's address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier's name.

A client heard through its hotline that John, the purchases journal clerk, periodically en- ters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier's address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier's name.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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