Discussion Topic Jegos is a manufacturer of plastic building blocks. Its reporting year ends on September 30. Throughout the previous reporting period, the company hired several new sales employees in anticipation of a busy holiday season. The company pays these employees on a commission basis, and the sales contracts are made months in advance. The Chief Financial Officer (CFO) is reviewing the financial statements and is concerned that the Sales on the Income Statement are far below what the company anticipated for this time of year. On October 5th, the CFO asks the accountant to modify the journal entries so that the new sales personnel’s salaries are recorded as Direct Labor. In your original post, answer the following: 1)What reporting concerns, if any, does this request raise? 2)Does this request have ethical implications? In your responses to your classmates, address the following: Try to take a position in support of or against ONE of the suggestions made by your peer. Be sure to defend your position by citing at least one example of why this idea should or should not be incorporated into the organization. When you respond to your peers, focus on capacity issues and how they relate to the ability to maintain flexibility in the respective industry. Keep in mind that, while there are similarities in manufacturing and service-based industries, there are also significant differences. Important: Keep in mind… Your discussion postings will be evaluated on content, participation, and written communication. Your main post must cover the points and questions as noted in the discussion directions. Your responses should enhance the discussion by posing new questions, offering new ways to consider the issues being discussed, introducing new sources of information based on research, or building on ideas posted by your classmates.
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