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Need help with this: You're a large grocery store chain accountant with average monthly sales of...

Need help with this:

You're a large grocery store chain accountant with average monthly sales of about $135 million. It's the last day of the month and another department employee tells you about a $20 million in expense that your company hasn't been charged yet and tells you not to worry about it right now that you're busy. What and why are you going to do with this information?

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Answer #1

As an accountant one should book the expenses for the month in the same month. the accountant should book the required $20 million as provision for the expense.

Dr expense

Cr. provision/expense payable

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