On a recent trip to Africa, J.T. Brown, sales manager of Prompt Technology, took his wife along at company expense. Linda White, vice president of sales and Brown's boss, though this travel and entertainment expenses seemed excessive. But White approved the reimbursement because she owed Brown a favor. White was aware that the company presidnet reviews all expenses recorded in the cash payments journal, so White recorded Brown's wife's expenses in the general journal as follows:
Sales Promotion Expense 9,100
Cash 9,100.
What is the ethical issue in this situation? What role does accounting play in this issue?
