The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2016

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2016, unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Use these account balances along with the additional information to journalize (a) adjusting entries and (b) closing entries. Emiko Co. uses a perpetual inventory system. Additional Information Accrued sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory shows $28,700 of goods still available.

Select each concept with its best description by selecting its letter in the dropdowns

Select each concept with its best description by selecting its letter in the dropdowns.

    Focuses on quality throughout the production process.

    Flexible product designs can be modified to accommodate customer choices.

    Every manager and employee constantly looks for ways to improve company operations.

    Reports on financial, social, and environmental performance.

    Inventory is acquired or produced only as needed..

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The Environmental Protection Agency (EPA) is in the process of investigating a possible water

The Environmental Protection Agency (EPA) is in the process of investigating a possible water contamination issue at the manufacturing facility of Northwest Forest Products. The EPA has not yet proposed a penalty assessment. Management feels an assessment is reasonably possible, and if an assessment is made, an unfavorable settlement is estimated between $20 and $30 million.

Which of the following statements is true?

A loss and a liability must be recorded for $20 million.

A disclosure note should be included in the financial statements, without an entry.

A loss must be recorded for $30 million and a liability must be recorded for $20 million.

A loss must be recorded for $20 million and a liability must be recorded for $30 million.

Northwest Forest Products has a contingent liability that is reasonably possible and reasonably estimable, within a range between $20 and $30 million. Since the loss is reasonably possible, but not probable, we will carefully disclose the situation, but not record the potential loss and liability in the financial records. Details regarding the investigation by the EPA, the reasonable possibility of an assessment, and the range of settlements should be included in the disclosure.

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