B&L did not have adequate documentation in regards to their sales or contracts with the distributors. Distributors stated that B&L made verbal agreements with them. The verbal agreements were that if they did not sell the inventory, they could return it at no cost. There was improper transaction classification because at year-end, the sending of supplies to distributors was classified as revenue (even though it was not revenue at all). The articles go into detail to state B&L “lost” documents or did not recall events, when asked by the
B&L did not have adequate documentation in regards to their sales or contracts with the distributors. Distributors stated that B&L made verbal agreements with them. The verbal agreements were that if they did not sell the inventory, they could return it at no cost. There was improper transaction classification because at year-end, the sending of supplies to distributors was classified as revenue (even though it was not revenue at all). The articles go into detail to state B&L “lost” documents or did not recall events, when asked by the