You are an accountant in a medium-sized manufacturing company Research Paper

You are an accountant in a medium-sized manufacturing company - Research Paper Example Accruals are revenues already recognized, but no drawn cash or recorded cash such as rent, salaries and taxes in an industry. Estimates are a class of adjusting entries which occurs when the actual particulars of an expense is not easily determined such as an entry for wayward debt. Inventory is an adjusting entry since in an inventory system which is periodic; the adjusting entry helps in determining the outlay of goods sold expense. In a computerized system, these entries would first be characterized into prepayments and accruals then define expenses into prepaid expenses and accrued expenses while the revenues would fall into unearned revenue and accrued revenues (Warren, Reeve & Duchac, 2012). This would be necessary since the computer system only understands systemic information. Some of the ethical issues arising from these manufacturing entries as seen in the studies of Gilbertson & Lehman (2009) include honesty. This is where the person delegated the duty of recording the entries, is necessary to demonstrate honesty when recording the particulars to avoid errors, and misappropriations during in the final books of accounts since it would amount to fraud which is