When should accrued expenses be recorded? Evan is in the process of recording the adjusting entries for Green Landscaping Services. Bob Green, owner and manager, has asked Evan to record all of the...

When should accrued expenses be recorded?

Evan is in the process of recording the adjusting entries for Green Landscaping Services. Bob Green, owner and manager, has asked Evan to record all of the adjusting entries except for accrued expenses. Bob has a meeting with the banker on Monday to apply for a business loan. Bob knows that the banker will review his balance sheet and income statement. Bob is concerned that by recording the accrued expenses, the business’s liabilities will be significantly higher on the balance sheet and a net loss will be reported on the income statement (due to higher expenses). Bob has instructed Evan to delay recording the accrued expenses until after his meeting with the banker. What should Evan do?