All right, welcome back into the original gangsters podcast. I'm your host Scott Bernstein. Today I'm bringing in Off the Bench, another utility man, classic MVP, Jeff Nadu from Barstool Sports and the sit down on Twitter and other socials is gonna come and kind of be my co-pilot, my wingman on this episode. We're gonna go into his neck of the woods out in Philadelphia. So, Jeffrey, thank you for joining me. The problem always good to be with you, Scott. I feel like that one of the great sixth men of all time, whoever that is, whoever you put that as, I'll be it. No problem. Drake said, like Lou Will, right? Yes, I was a big Lou Will fan. He was here in Philadelphia for many years. So, yeah, I'll be Lou Will, no problem. Jimmy, my normal co-host, the doctor, Jimmy Bucciolato, is doing his doctoring affairs. He's a PhD and he teaches a professor at Wayne State University and he's got finals. So, he's in the midst of grading papers and writing final exams for his students on this kind of stuff. So, I'm jealous because- I guess it's becoming that time, right? I mean, school's ending soon for, you know, different universities, stuff like that. What I'm saying I'm jealous about though is if I would have loved to have been a student at a university and being able to take classes on organized content. It's interesting where I went at Indiana. We didn't have those opportunities. When I hear you mention that, I'm interested. Like, that would be great. I'd love to study this kind of stuff. Yeah, yeah. I hear like this- I hear this teacher teaches a class at Rowan. Yeah. Yeah, yeah. So, it's starting to be something that's, you know, in the curriculum in academia. Well, I heard like Harvard now also has like a course about the wire, like the television show. So, it's like, wow, okay. So, let's dive in. This is going to be an analysis, I guess, a breakdown of a story that I put out in the last week or two that I categorized as a sleeper mob hit in the Philadelphia Mafia's Joy Merlino crew. A group that's been leading, allegedly, has been leading the Bruno Scarfield crime family for the last 30 years. These are guys that took over as kind of a group in their early 30s. They're now getting into their early 60s. So, it's been quite a ride with these guys. And for the most part, we know the gangland hits, starting in 1990, when they started to kind of come on the scene all the way until the most recent recorded one in 2012 with Gino Di Pietro. We know all the major players and all the major hits. Some have been beaten in court. There were a handful that were brought into a racketeering indictment against a skinny Joey Merlino, the boss of this crew and his group of loyalists in 2001. They beat all those murder counts. But there have been other murders that have occurred in the late 90s into the 2000s that investigators have tried to pin on the Merlino crew and have been unsuccessful. What I reported recently is a gangland hit that nobody in the public, at least, knew about until I wrote about it. The Merlino guys knew about it. The feds, the police in Philadelphia knew about it. Grand juries were convened before the pandemic related to this investigation. But even the government was unaware of this when it happened, because the victim was a non-mob affiliate. Wasn't known as someone that hung around with the mob. So when he popped up dead, it wasn't traced back to these guys. But this is a group, as you know, Jeff, and then I'm going to throw it to you when I kind of give a bite size synopsis of exactly what happened. This is at the time when that group was fighting a war against the Sicilian Don John Stampa. And there was a lot of bloodshed. Both groups were kind of in this kind of bunker style in foxholes. But as this is going on, as this warfare is going on, the Merlino crew has other rackets that they're running. And one of these rackets, according to my sources and according to what's been told to the grand jury, was a drug racket. And at some point around May of 1993, at the height of all this warfare, the Merlino crew got scammed out between $150,000 and $200,000 worth of drugs and cash. And Joey Merlino's best friend, Michael Mike Chang-Changalini, was the person that was kind of in charge of these rackets. And he had someone that was running point, who he deemed responsible. That person is another prominent member of this group. He called them to a meeting. They got into a physical altercation for Mike Chang, blaming this guy for what happened. And then a couple of days later, the guy that had scammed them is shot to death, leaving a bar in, I believe, some part of South Philly. But the investigation is happening in Norstown, which is out in Montgomery County. And this was, no one really knew about it. When Ralph Natali flipped in the late 90s, he was a, I'm sure people that are watching this know who he is, the kind of front boss for Joey Merlino. He tipped them off, they started to kind of know about this. But as the 2000s continued, they accumulated more information to the point where in the late 2010s, they actually convened grand juries. So Jeff, let me kick it to you after that kind of long-winded synopsis, giving your initial thoughts. Well, I mean, you just really add this to the list of unsolved hits involving these individuals, or allegedly individuals, right? You have, and look, I'm just going to say it, there are two things about what you said that I find interesting. I've said to you many times, I don't believe Joey Merlino is the head of the Philadelphia Moff anymore. I don't, I've said that many times. I just don't see it. I think he's tired of that world, and I think he's moving on personally. Does he still make a little money from it? I don't know, probably.  You know, I think that's the big question. But I also wonder, you know, if your chief person telling you about this is Ralph Natale, who as we know, not exactly someone I believe if he told me this guy was blue. Yeah. You know, that's kind of the question. But this is something that for years. Just to clarify, Jeff, I think this is, he was the first one to tell him about it. I don't think they got to the point almost 20 years later when they convened a grand jury, I don't think it was simply based on Natale, because like your point out, by that point, it's credibility had been quite. Right. And I think this has been the challenge for the feds in this area is, you know, they've never really been able to figure out any murder to connect these people to. And that's always been the challenge, right? You have, you know, Turkey and you have Casasanto and you have a totally different, yeah, Long John. Sure. But I think, you know, what's interesting and fun about this group is I remember when Ron Previti started getting around the Joey group. Joey was always very cognizant not to discuss drugs ever.  You know, maybe this is something, and again, I'm not saying he did do this, but maybe if he was involved in some way in this back in the day, maybe this is something that kind of persuaded him to get out of that world. But just to be clear, I don't believe, I reported that there have been two people that have been calling from the grand jury that I'm aware of tied to this group. One being at one point, a pretty high-ranking guy now is still a pretty major player. And I'm reporting that he took the 5th Amendment when he went in front of the DJ in either 2018 or 2019, and then the wife of another pretty prominent high-ranking member who was allegedly at the bar the night that Mikey Chang got into a physical altercation with the member of the Marlino crew who was in charge of this command. I don't think they realized he was a con man, but this guy was running point for that racket. And when they got scammed, this particular member, the Marlino crew, was called on the carpet for it. And this wife of one of the Marlino crew members was present allegedly at that altercation, not at the murder. And I just really want to be clear that right now, Mikey Chang is the only name that's been tied as a suspect to this. I would assume that Joey had some knowledge or involvement, but I haven't heard that. Here is the thing. I mean, in the end, let's say this is connected to Philadelphia, right? Let's just say it's Mikey Chang. Here's the problem. Mikey Chang's dead. He's been left for many years. He died in two years. We haven't said that. He died, like, within weeks of this happening.  This is a gangland style hit in a parking lot, probably, with back in the day when there's no cameras. This would be incredibly hard to prove beyond a reasonable that anyway. And again, this goes back to the continued challenge of, we'd always talk about, and I've heard Georgia and Estasia mention, you know, people mention about the Philly crew.  But I'll tell you what, if they were involved in a lot of this stuff, they got away with a lot of it, didn't they? And look, they're never going to speak. We've talked about that before. The difference between this group and primarily every other mob family is they're all friends. They've been friends since they were kids. They have a bond that's unbreakable. And I'll tell you what, you mentioned a wife. These wives are the same way. They are a group in a way. They all know each other. They all hang around each other. They're family. I mean, they're literally and figuratively family.  And there's rumors that one was involved in something involving family. It's great. They're all, they're all close. They're all together. And, you know, I think this would just be something you add to the long list of people that have died. And there's possibilities maybe people are involved. But, you know, this is the problem. What was that? Yeah, I want to be, again, I want to be clear about something. If you haven't read my reporting on this, first I reported that, hey, this happened and that there were grand juries that were convened in the pre-pandemic 2018, 2019. But then more recently, I've reported that they're from my sources. There's no traction on this investigation in 2023 that there was some traction in 2018, 2019. And this is real quick, and this is the substance of what they have at this point on these people. Nothing, right? They are, they're trying to grasp at shrawls, you know?  I know you guys talked about it. You know, I remember, I've been to that restaurant that he hangs out at, or he did hang out at. Yeah, Stokey Joe's right. I mean, they would watch him. I mean, in his 80s. I mean, they have a hard on for this group and they don't like these people. And they're going to try to grasp at any straw they could possibly grab at. And this, you know, who knows? I mean, there could be others. We don't really know. But will there ever be hard evidence that could connect them to anything? And even if there is, I've always said, and I think you would know this, like just because you get a suspect in something doesn't mean you have a conviction. You've got to then prove it, you know? Yeah, I'd go a step further and say, you can know exactly what happened, you know, from, you know, the very start of a hit to the very end of a hit. You can know who exactly you did it, where it was done, how it was done. That doesn't mean you can prove it in front of a jury beyond a reasonable doubt. And this is what makes someone like Joseph Molino extremely interesting and fascinating because I've told you, I think he has seen the last of a jail so I don't think we'll ever see one again. I think he has distanced himself from that group. He's a, I think one thing we don't talk about with him. He's very insulated. There's no question. And he's an extremely smart individual.  I don't know what you're talking about. I've never heard of that. I don't even know what that is, you know? He, he's, I think a lot smarter even than the other people in the group, right? Because we've heard them get caught on, you know, at making ceremonies, things like that. He's insulated. He's, you know, if he is still involved, I mean, he's doing it very quietly. I think he's realized I have two grown daughters. I have a wife and I spent half my life in prison and I need to, I need to stop, you know? Jeff, I think to your point, the making ceremony that we know took place because of these, some, some cases that recently, some Fed cases that came down recently against this group in the last couple of years. And there was a informant, a confidential informant that was wired up at a making ceremony in 2015. And Argyana, almost, right, Anthony Perciano, almost all of the major players in the Philadelphia mob were present, but guess who wasn't present? Right.  He's got a lot of buffers. If we, real quick, if we're talking about, like if everything that's ever happened in his life that we think happened, if all of it's happened and we look at the amount of time he's been involved, right, arguably since his 20s, you have to look at what he's done as one of the more extraordinary runs in the history of this thing, right? Luckiest man, luckiest, smartest, savviest. Yeah, like he, like with Chinchaganti was boss what, 30 years, that's a long time, right? You don't last that long.   Let's compare and contrast though. This is kind of interesting when I think about it. Let's compare and contrast the Merlino, the alleged Merlino regime of the last 30 years and then the two prior regimes. In both of the two prior regimes, the Scarfo regime and the Stamford regime, you had- I don't think it's comparable to be honest. Not just soldiers, but coppers and administrators that were convicted of murders. I mean, John Stamford is doing life in prison right now for homicides that he ordered in the Merlino war, including the murder of Mikey Chang in, you know, the months after the sleeper hit we're talking about here, died in Joey's arms.  And, but look at, from when the Merlino group took over till now, and like you said, it's been almost 30 years, roughly 30 years. There's only one guy that has a murder rap. I mean, a conviction. Nicodemus. And it's a state case. It ain't a fed case. He'll get out. He'll have nailed one of these guys on a murder in 30 years. I mean, I'd have to figure. I mean, I, and I'm not sure on this. I remember I lived in Philadelphia when this happened. I mean, he's got to be approaching parole at some point, no? He's doing a Nicodemo? Yeah, he got 25 to 50, right? I mean- He'll probably got another 10 years. Well, yeah. That's what I'm saying in the grants. It gets closer than it, it's, you know, it's closer than you think.  And he'll get out as an adult when he's got kids. But outside of that, that's, as you said, the only one. So I think there's a, there's a couple other things I want to drill down into with this. So you had a situation, allegedly, where this guy scams the Merlino crew and the person that Mikey Chang, and again, I haven't heard Joey's name involved in this part of it at all. So I have no idea where Joey was, what he knew, what he didn't know about this part of the story about Mikey Chang being at a bar in South Philly, being alerted that this scam had been perpetrated. I believe Mikey Chang was drinking, possibly using some drugs and was really jazzed up about this. And he calls a member of their crew, a member of this inner circle, one of, let's say, one of the top five to 10 guys. And he calls them to account for what happened and they get into a physical altercation, which includes a firearm, someone got shot. So that part of the story is actually in some ways more explosive than the no-name con man, drug rip-off artists that we don't know. I don't know his name, I don't know the specific date when this happened. I just know that grand juries have been convened and people in the Merlino orbit have gone in front of those grand juries. But what is it? I think it's, I'm gonna give my quick analysis and then throw it to you. I think it's, again, speaks to the tight-knit nature of this group that their oath and their bond is more to each other than any LaCosinostra family that this prominent member of the inner sanctum could get into an altercation like that, get sent to the hospital. But at the end of the day, it didn't cause any animosity. It was kind of like two, I mean, it's extreme, but it was kind of like two brothers fighting and then afterwards going out to have a beer. And it's not like this guy has ever even shown any remote sign of going off reservation. So I think it speaks, it's crazy it is to hear that these guys came to blows and somebody got shot and had to go to the hospital, but it didn't really wreck the crew. I mean, the crew stayed intact and it's for another 30 years. Friends fight, right?  What are we doing? So yeah, again, this is what makes it all so interesting with this group because it's unlike anything we've ever seen in any other family. It's more broad, like a lot of family members in like the Bonanno crime family don't know the once in the bra, like they don't know each other. So yeah, it's fascinating.  It's extremely compact. I've said also most of these people are related, right? There's a connection familially through an aunt or an uncle or a cousin or something. And they're all family, really. They're all one big family. They all have some sort of connection. And yeah, it's fascinating. But I think it's, you have a hierarchy in a way where maybe the individual that got beat up or shot, he was in the wrong and he said, you know what? I'm wrong, but Chang was upset. He pissed off, he was drunk and he did something, maybe he shouldn't have, it was a little heavy, but yeah. I mean, that's the fascinating thing about this group. It also speaks to the type of guy, Mikey Chang was, love him, hate him, like him, respect him. This was like, you know, the definition of an OG, the definition of a standup guy, someone in this world that check all the boxes and you're not gonna get over on someone like that and last very long. And again, I'm not condoning that behavior. I'm just stating for the record that Mikey Chang was the type of guy, if you stole $150,000 from him, it's not shocking to me to find out that this guy was dead within a week. And I also wanna be clear in my reporting that I don't think Mikey Chang was the shooter. I think he was present, but another pretty prominent member was the shooter, I'm told. And then another guy that is a big part of this crew, but doesn't have any, has never been convicted of any acts of violence, was involved in some getaway driver capacity. And, you know, so there's a lot at play here. And this thing has stayed under wraps for a long time. I don't think anything's gonna come of it. I heard that in 2018, 2019, that authorities thought they might be able to build a case here and this could be the trump card to bring down this group and that they were gonna bring a case that nobody even heard about and that they might have gotten a partial print off of the car of the victim. But now what I'm being told is, this thing is kind of in the rear view mirror for the feds. I think it would be in the FBI's best interest to just start looking into other business at this point because it seems like they're just reaching a lot of the stuff on this thing, and they keep bringing these popcorn cases to this group and you wanna put them away for five years, that's cool, but they could do five years quick.  I mean, they have families and things, but they'll take it, it's better than doing life, right? But yeah, I mean, this is all pretty, pretty flimsy. And even if someone did come forward, who would it be?  Yeah. You're just coming aboard now. I got this reported just for the record and I also wanted to state that this is something, again, the public didn't know about it, but every major crime reporter in Philadelphia that covers this group knew about this four or five years ago. When the grand juries were convening, this wasn't a secret amongst the criminal reporter, gossip circuit or whatnot. And I sat on this for quite a while. And honestly, I was waiting for someone in Philadelphia to report about this, but when it's been four or five years and Chickie Changalini died last month and we were talking about Chickie and you have the anniversary of both this situation that we're talking about coming up and the anniversary of Mikey Chang's murder in August, I felt like it was appropriate to come out. And I don't want to, like I said, I'm not naming names. And even if I did name names, these aren't people that I don't think will ever have to account for this. I wonder if they've seen the grand jury and they've said what they've said and I've heard that anybody that's gone in front of the grand jury has pleaded the fifth. So- You have to wonder with Mikey Chang, let's say he doesn't die, you know, where would he have been in the hierarchy? I think he would have been boss and Joey would have been under boss. But then he also throw in like, and I was thinking about this, like the person that I've always been fascinated by, like what if Salvi Testa kills Nikki Scarfo, right? And Philly and Eddie, let's just say he, I don't know, he just says, hey, look, Salvi, I'm out. I don't, I'm out on this. I don't want to be a part of it. You know, and he leaves and goes wherever. Who knows? How did they work with this group? Does this all come to a head anyway? And when I heard Salvi and Joey got along really well, I mean, Salvi was going to marry Joey's sister. That is until he, you know. Right. So, until he wasn't going to marry, until he broke off. Let me ask you, what do you make of, I spoke to a woman. I don't know if, I think I've told you about this. I spoke to a woman that claims she essentially said she was the reason he didn't marry Maria Marlino. She had a relationship with him back since they were kids. And she had wrote a book about it actually, very interesting woman, Rosanna Brucci. Pretty interesting. But that's, that's here or there. It's a different story. But I mean, I love playing that game of like the what if game. Like how fate could have spun in a whole different direction. Because this could have been three groups.  It could have been the John Stamford. Cause John Stamford had come across to me as someone who was just going to get out of the way. And I think it was a, John Stamford was a, the John Stamford era was a result of circumstances. I mean, he, he was a forgotten entity. Like in, after the Bruno hit, I don't think anybody would have told you in the, you know, in the mid 80s, that someone like John Stamford could ever come back on the scene and take over. I mean, people have written them off the page. But when Scarfo gets locked up and he had the ties in New York and the Gambino, you know, Gambino's inserted him in there. Right. Yeah. He was just kind of a, a wheel guy. You know, he was like a soldier, right? But yeah, it's all interesting. Cause they're all kind of different groups.  They've been, it's been relatively quiet other than the case that they brought against Ligambi and Stano and Mousie, who by the way, you know, Mousie's child then is out now. But that was, you know, dubbed racketeering light by George Anastasia and the rest of the Philadelphia media. And I think that was an appropriate tag.  I mean, even though you have this case had the tape in it with the making ceremony, that was sexy. But the case itself is, you know, weak. Yeah. It's pretty run of the mill stuff. It's not put anyone away for, for decades and decades. Stevie's got to go and do six, five, five or six years, which he can do standing on his head. And Dom Grande's got to go and do, you know, probably seven, six or seven. And, you know, he'll do some easy time and walk out. I don't think people, I don't think people understand. And look, it sucks, right? Cause you're away from your family. They've got kids and things like that. But I don't think people quite understand, like for people like this, how simple that is. Like these federal prisons, they're going to, they're going to Lowe's. They're not going to USPs or anything. They're going to go, they're going to hang out with people. They're not going to have to go home. Yeah. It's, it's incredible. And they have money. It's not like you're going to starve. You know, it's, it's, it's essentially it. I'm sure if they didn't have families, they wouldn't care at all. You know, it's, it's not that bad. I only issue though, kind of on, on the Scarfo thing. I'm just curious about this with you. I did an episode this week on Joe Vito, Masternardo, right?  And I'm, I always kind of say, well, yeah, but remember, I mean, his father-in-law was Frank Rizzo. And he wasn't necessarily in Philly, right? He was in out in Monco and the suburbs and the main line. Do you believe he actually, in one way or another, said that to that group?  Tell Nikki to, you know. I think it's definitely possible that he made some comments that got back to Nikki. I think it's definitely possible or probable that some of his posturing was perceived as a you know, I'm not going to respect you at the level that you think you deserve to be respected at. And I'm going to continue doing my own thing.  I think he was an outlier, you know, a unicorn. And that's to his credit. I mean, look at the money he was making compared. I mean, he was doing big things, man. Big, big money and really did not let these guys get their hooks into him. If at all, it was very, very marginal.  So, and he was like the biggest, definitely the biggest independent bookmaker in the area. Sure. And in an area that is very gambling rife. I mean, there's a lot of gambling is big in this area. So, but yeah, I think the Philly family is, is, is fascinating. They've always been fascinating. But yeah, I don't think they're ever going to connect any of these. So you got a lot of smoke, but that doesn't mean there's a fire. And it's one of these things where the longer it goes, the further you get away from these things, it's just not realistic logistically or even protocol-wise without someone that's gonna get on the stand and point the finger without any hardcore physical evidence that ties somebody to a crime scene. It's not gonna happen. And right now there isn't anybody that is gonna get on the witness stand and point the finger. And there isn't any physical evidence tying these guys to any of these unsolved hits that have kind of been lingering out there because we know for sure, based on what history tells us with the way that the FBI and the US prosecutor pursues these guys, if they had any physical evidence, they would have brought a case. And remember, it was 30 years ago, 30. But even if you wanted to get into what was going on in the early 2000s, that's 20 years ago. Even if you don't want to take it back all the way to the 90s, if you just want to go into the early 2000s with what happened to Long John Marterano and Ronnie Churchey, which was 99, but Marterano and Johnny Gongs were in the early 2000s. But you look at all these, you look at all these hits, right? Okay, they would be incredibly hard to prove, right?  But back then, it would just be super hard to prove. And who knows if the witnesses were even around, they could be dead by now. I mean, you really, I wouldn't think any of these people are gonna have trouble sleeping knowing this info's out. Yeah, just to wrap it up, I mean, the reason I wanted to report this was I thought it was newsworthy and I think it's just an interesting historical footnote almost to the Merlino era, because it's something that the Merlino era has been chronicled ad nauseam and I'm guilty as anyone. I've written quite a bit, I've done quite a bit of content about the guy and some of it can be redundant, but this is definitely a anecdote from the early Merlino era that nobody really knew about.  It's like, these were, there were grand juries that were convened to take testimony on this. And real people in the Merlino camp were called in front of these grand juries. So, like I said, it got, if you're gonna make the analogy of a sporting event, the feds got to like, you know, the third quarter and they were in the game, but by the time the buzzer sounded at the end of the fourth, they had run out of gas. And I think maybe, you know, you can sit there and play the what if game, maybe what happened with the pandemic, disrupted the momentum. And if the pandemic never happens, they finished the game. But the fact is we're here in 2023 and I'm being told this thing ain't being brought. There's not gonna be any more grand juries. So I just wanted to report it. I wanted to get Jeff's take. Thank you for joining me, Jeffrey. Yeah, I think unless they involve us as the drugs again, I don't think they'll ever see the jail cell again. I think it would be very difficult. And the top suspect, like Jeff pointed out right when we started to talk about it, top suspect was killed within, you know, two months of that happening. So. Right. Thank you, Jeff. This was, you know, a shorter episode than normal, but I didn't think we need to, you know, we had super interesting nonetheless. I mean, just add it to the list of unsolved, you know, bodies, right? And maybe one day we'll get a name and we'll get a date. But I, you know, I wouldn't wasn't able to provide that. And frankly, even if I was, I'm not sure if I would. But thank you. Thanks, Jeff. Please check Jeff out on the sit down. An amazing podcast. This guy's a rising star in our genre. And he's already, he's not even a rising star. He's a superstar in the betting, sports gambling world, touting this guy is one of the best handicappers in America. But. I try. I don't know if I am. But it has, is quickly making a name for himself in the world of organized crime reporting. And it's been a pleasure working with you and combining for this kind of crossover. I have an idea for a show for you and I in the next couple of weeks. So I'm sure we'll get you on our show pretty soon. All right, awesome. Thank you, Jeff. OG podcast, we will see you next week. Scott Bernstein, Jeff Nadu for Dr. Bucilato, who is great in papers. We're out.


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You can open Incognito if using Google Chrome by selecting the three dots in the browser Incognito window, typing into the search engine, QuickBooks Online Test Drive. We're using the sample company to compare the Accounting View, the one Get Great Guitars is in, and the Business View, the one the sample company is in. Toggle between the two views by going to the cog up top, switch the view down below. Let's open up or duplicate some tabs like we do every time. Right-click in the tab up top to duplicate it. We're going to duplicate the duplication process, duplicate again. Go to the first duplicated tab that's in the middle and then down to the reports on the left, opening up the balance sheet reports. Surprise, surprise. Notice that if you're in the Accounting or Business View, I mean, the Business Overview, that's where the reports are located in that particular view just for your reference. Back to the Accounting View and Get Great Guitars. We're on the tab to the right, reports on the left, opening up the profit and loss. Of course, closing the hamburger, changing the range 010123. Let's go to 022823. I'd like to see it on a month by month, side by side, run it to refresh it. There we have a Jan Feb tote. The Feb 28, that's our cutoff date. Going to the tab to the middle, close up the burger, change the range 010123. Tab 022823. Hit the drop down to see side by side, run it to refresh it. There we have Jan and Feb, our cutoff date, our adjusting entries that we're putting in place are going to be as of February. Remember, adjusting entries will be done at the end of the month or the end of the year. In our case, we're doing them at the end of February. That means February 28, that's our cutoff date. All right, now we're looking at the accounts receivable. There's two things that could happen to the accounts receivable that we're going to focus on at least with regards to the adjusting entry. One is the timing of when an invoice has been put in place, and the other has to do with those deposits that are going to be in place. So let's go to the tab to the right. I'm going to right click on the tab to the right and duplicate it to take a look at the sub ledger related to the accounts receivable. Going down to the reports on the left-hand side and closing the boogie, I'm going to scroll down to who owes you reports, and let's look at the customer balance detail report. This is kind of like the sub ledger for the accounts receivable. So that looks good. Now note, you'll only have accounts receivable if you're on an accrual basis. Remember that the revenue cycle will end hopefully with cash going up at the end of the cycle. If you're on a very simple system due to the industry you're in, you might just record revenue with a deposit type of form, possibly with the bank feeds if you're getting paid by a platform like a YouTube, or you might have a cash register situation where you collect the cash and then make the deposits, or you might be in a situation where you have to do the work, invoice the clients, that's when you have to track the accounts receivable that will be driven typically by industry. Accounts receivable is an accrual account by definition we're deviating from a cashed based system. So now we're tracking the accounts receivable in the sub ledger and we could have instances then where we get paid before we actually do the work. That's one thing that could happen with the receivables. That's when we ended up with this negative kind of amount for Eric music. We'll talk about that one later. That's like an unearned revenue kind of issue with a little bit of a twist on it. The other kind of issue, the one we're going to deal with now with relation to accounts receivable is a timing issue. And the example we're going to have here, note that revenue is recorded with QuickBooks when we enter the invoice, but it's possible that we did the work before the cutoff and didn't enter the invoice until after the cutoff. Meaning the fact that revenues, the invoice is the closest form to the point in time that we did the work revenue should be recorded in a cruel basis when we do the work, not necessarily when we enter the invoice. So you can imagine, especially in a job cost situation where we did the work before the cutoff sometime in February, but we didn't enter the actual invoice until March. So generally then, to be on a perfect accrual system, you would have to pull the revenue from that invoice back into before the cutoff, back into February. That's going to think that the situation will imagine here. This might not happen all the time for like small businesses. You might not worry about that too much. But when you're in an auditing type of situation that that timing difference is revenue being recorded in the proper period when the work is done is an important difference. If people were trying to distort their financial statements, for example, then oftentimes they play with the timing differences in terms of was revenue recorded in the proper period, for example. All right, so let's let's do that. To see this fully, I'm going to actually enter a transaction that happens in March. And then that's the transaction that we'll imagine we'll pull back into the prior period. So I'm just going to enter a normal journal entry just to show what I'm doing here. I'm going to enter a normal journal entry. It's going to be with an invoice. And let's say it's going to go to Anderson guitars, Anderson. And let's say that it happened in March, let's say like March 5th. So 03052303. Let's keep it at that 030523. Okay. And so then that's after the cutoff date. But we're going to imagine that the actual work was done before the cutoff date. You can imagine this most clearly with like a job cost system, where you're trying to take the time from like your staff and enter it into the system. It's quite possible that you're going to enter the time into the system at one point after the cutoff date when the work was actually done before the cutoff date, because you had to collect the time before you invoice the client. But we're going to do it with an inventory situation just because that adds a level of complexity with having to track the inventory on the invoice. So let's go down here and say that it was an ELP that was sold. So it's an ELP. That's a guitar epiphone. We're going to say one of those. So here's our transaction, normal transaction here. This is going to be what's going to happen. It's an invoice that's going to be recorded after the cutoff date, even though we're going to imagine we delivered the guitar before the cutoff date for whatever reason. And so we have to pull it, we have to pull it back into the current system. So in March, let's hit, let's hit the location and changes to our generic 5%. It's going to record accounts receivable increasing AR by 525, including the sales tax and the sub ledger for Anderson guitars. The other side's going to go to revenue, but only for 500. The sales tax is going to be increased by 25. The inventory, that's why we did an inventory item to deal with the added level of inventory complication. Inventory is going to go down by the amount driven by the item, which I think it's like $400 here. And the sub ledger of inventory is going to go down in units and the cost of goods sold, the expense related to consuming the guitar is going to go up. The net impact on net income will be the revenue of 500 minus the cost of goods sold. Let's save it, close it, check it out. So we'll say, all right, let's save it and close it. So if I go back to my balance sheet, let's up the date range to the end of March 03 31 23 and see that side by side. So now in AR accounts receivable in March, we've got this invoice that happened in March, but the problem is that it should have been recorded. We think the actual work was done before the cutoff. That's the issue. I'm going to go back the other sides on revenue. So if I go over here and I change the rate to 03 31 23, the range, the rate, the range and run it. So now we've got our revenue revenue here for the 500 minus the cost of goods sold 400 that happened in March again. So that's going to be, but we think that revenue should have been earned before the cutoff. You see the issue. You can see the temptation of certain people trying to manipulate their books might try to deal with this timing differences to have things reported in March before or after the cutoff, depending on how they're trying to manipulate the books. But even if they're not trying to manipulate the books, you can see how it could happen naturally in a job cost type type of system just based on the billing process, for example. And then of course, the other side is going to the sales taxes is going to have an issue with regards to sales tax. And then the inventory is also going to have an issue with it because we had, if I go into inventory for March, we've got this decrease of the inventory of the 400. And we saw the cost to goods sold on the income statement. We also have a sub ledger for inventory tracking by unit. So if I go to the tab to the right, right click on it, duplicate it and go to my reports down below. It's taken a long time to duplicate. You're testing my patients here. Quick books. I'm going to any case reports on the left. Let's go to the inventory valuation summary. And so there it is broken out by the units that we have. And the 9698 should tie out to what we have over here on the balance sheet for inventory 9698. Let's go back on over, change the date up to 033123 and see it as of that 4346. And there's the 4346. Okay, so now the fact is, and you can most clearly see this on the income statement, we're saying, Hey, look, your income is wrong, because this actually happened, we shipped the goods in February and you've recorded the invoice in March. So we need to fix that. Now you might say, well, the easiest way to fix that is to just to go into the actual invoice here and go into that invoice and just change the date to whatever date you think is the proper date. But we don't normally want to do that because the invoice is going to be tied to other forms number one to the receive payment and so on and so forth. And for whatever reason, the accounting process is doing what they're doing, assuming it's a legitimate process and they're not trying to manipulate the system, there's a reason why they're entering it when they entered. So we don't really want to mess up whatever system they're using. For example, if it were a job cost system, and they're entering this whenever they do their billing, which happens every two weeks or something like that, we don't want to say, okay, we're just going to pull that, we're going to mess up your whole timing system so that we can pull that before the cutoff date. Instead, what we want to do is pull over this whole transaction to February with a journal entry and adjusting journal entry, and then make the financial statements correct as of the cutoff date, and then we'll reverse it with a reversing entry so we don't mess up the accounting department. So that's what that's going to be the concept here. Now, this is a more complex adjusting entry and reversing entry. So sometimes it's useful to actually think about this with an Excel worksheet, just to think about, let's think about what the journal entry is so that I can enter this into the system. So if I have an invoice, and I'm going to try to make a journal entry, what's that journal entry going to look like? So let's just pull up Excel so we can think about it. I'm going to go to the triangle, right click, and format this thing, and go to currency, bracketed numbers, no dollar sign, we'll keep the decimals. Okay, so I'm holding control and scrolling up. I'm going to do this with debits and credits because now we have a fairly complex journal entry and debits and credits are easier to see, but I'll also explain it in terms of increases and decreases. So what happens with this invoice that we're going to have to record in journal entry format in our adjusting entry? Well, we know accounts receivable, AR, I'm just going to abbreviate, goes up by the full amount. Let's keep that till the end. We know that sales goes up or revenue is going up by the amount that we charged 500. So I'm going to put that as a credit. With a negative, that's how I'm going to represent credits with a negative. I'm going to make the whole thing bolded to. And so that's a credit. And then we know that we know that sales tax payable is going to be 5% we're saying. So whatever we charge, it's going to be this times 0.05. There's the $25 and the accounts receivable then is the plug, the negative sum of that. So we're going to be collecting or we're charging 525 sales is 500 plus the sales tax. Then we know that cost of goods sold, cost of goods sold is going up by 400 and inventory is going down by 400. So there's the transaction. There's actually a lot going on with it. There's also some more issues involved with this, because I have to think about the sub ledgers in particular accounts receivable and the inventory account have sub ledgers. So accounts receivable, the sub ledger is for Anderson. Now QuickBooks won't let me post something to the receivable without creating a customer, which is usually good. But when you do the adjusting entries, it's kind of bad because I don't want to hit the sub ledger. I don't want to mess up the sub ledgers. I want to enter it as a adjusting entry and then a reversing entry. So one way we might do that, there's two kind of approaches. You might make another accounts receivable account, possibly making it as just simply a other current asset account, so that you can then show your adjusting entry in that account. But that's not perfect because it's going to look a little bit ugly on the financial statements because it won't be in the same account and you're going to have to use another account type in order to avoid the sub ledger. The other thing you can do is create, and this is what we will do, a customer that is designed just for adjusting entries, like customer ZZZ is what I'm going to call it so that it's on the bottom of their customer list and hopefully doesn't mess anything up. And then the inventory also has a sub ledger, which will be thrown off if we report something to it. But we should be okay with that one because it's not going to because we'll reverse it. So it doesn't force us to use the sub ledger account. It doesn't force us to use an inventory item, in other words, in the same way that the accounts receivable does. So that's actually good in this case because it doesn't force me to mess up the sub ledger or do anything funny to it when I do the adjusting entry. Sales tax is another one where you might be concerned about it because there's a sub ledger for the sales tax because we're using the widget to pay off the sales tax liability. But I believe we're okay with the sales tax if you're concerned with that sales tax account. Again, you might make another account called sales tax payable adjusting entry or something so that you don't actually post something to the sales tax account itself. But I think we're okay with that. So I think I'm going to try to post to the sales tax payable account itself this time. And we should be okay. If you're concerned with that, you can you can make another account. So let's take a look at that in practice. So now I'm going to make an adjusting entry. Now, last time when I did the adjusting entry, I went to the register to do it. But this one's too complex to do that. There's not just two accounts affected. There's too much going on. So I have to use in my opinion, it's easier to use just debits and credits, just enter a journal entry. So I'm going to go back to the first tab and just enter a journal entry. And I'm going to go to the plus button, journal entry. And I'm going to reconstruct this thing that I just made 228 as the cutoff date to 28. And then accounts receivable. So accounts receivable is going to go up. And I'm going to make it go up by the 525, the 525. And now I'm going to not put a name here just so you can see the problem. It won't let me record it. I'm almost positive. And so the next one is going to be the sales. So I'm going to sales of product. So there it is. That's going to be for 500. I want to put in the description every time adj entry. Let's do a capital adj entry. I'm going to copy that. Boom, boom, boom, boom, boom, boom. And then this is going to be, I'm going to put it to California department. This is the one I'm kind of a little bit, a little bit dubious about putting it to that account. But I don't think it really will cause us a problem as it as it would in the accounts receivable or accounts payable. So I'm going to keep that and then cost to get sold cost of goods sold. Why does it have a number one one that I'm just going to go cost good sold. This is going to be 400. Okay. And then the other side goes to inventory. I'm very skeptical posting things to inventory in general. But here I'm okay with it because I'm going to, I know I'm going to do a reversing entry. So I know this is going to throw me off from my sub ledger, but that's okay. Then I'm just going to reverse it. Okay. So I don't think it's going to let me record it because of this item here. Let's just show that just to show you. It says when you use accounts receivable, you must choose a customer. Now I could put Anderson over here because that's who we sold to it will let me record it. But then when I go to the detail for Anderson, let me show you if I right click and I add I duplicate this thing and I go down to the cut the sale. I'm going to close this out because I have it in another tab. I go down to the sales and I go into my customers for Mr. Anderson. Then I'm going to have this journal entry in here. I don't want a journal entry in here. That doesn't look right. I should only have invoices, estimates, payment forms and sales receipts in the customer detail, not journal entries. So no matter what I do, even if I reverse it, it's going to look funny and on the bookkeeping side of things and they'll be mad at me.  So I'm not going to do that. What I'm going to do is I'm going to make another one that I'm going to sneak this thing down at the bottom so they don't see it and then they won't be mad at me. So I'm just going to make a customer of ZZZ and then I'm going to put that over here and then save it. So now it'll still make this messed up customer, but hopefully it'll be at the bottom of the ledger and they'll totally never even see it. It won't bother anybody at all. That's my goal. And then when we reverse it, it'll reverse out down there. Let me show you what I mean. Let's save it and close it and then tab to the left. So now if I go to my customer center, which by the way, if you're in the bookkeeping view is down in the get paid and pay area customers right there. So then if I go into here and I look at my customers, let's do it this way, then it's not going to be an Anderson. It's not messing up Anderson stuff at all, even though it's related to Anderson. It's got the ZZZ customer. They're going to be like, where did that come from? It's just don't worry about it. And so it's got this journal entry, which again, doesn't look right because it should be an invoice, you would think. And when I make the other reversing entries, they're not going to link together in the same format as when you have a invoice and a payment. That's the problem, but it's down here where it doesn't, it shouldn't really mess anything up. So we should be okay. That's my theory about it at least. So then we're going to go to the reports and see what happens, run it. So now we've got the accounts receivable has been adjusted. So now if I go into February, we've got this journal entry that was put in place. If I expand this to 03 31 23, we can see that as of March 5th, it will be in there two times. So now it's in there twice, but it's correct as of the cutoff date. We put it in before the cutoff date. That's good. Now it's duplicated after the cutoff date. That's why we're going to need a reversing entry to make sure that it doesn't mess things up by that point, which we'll do next time. The other sides on the profit loss, the P and the L. So then I can say, okay, if I go into the revenue here, we can see that there it is with the adjusting entry. We can see that we reversed it and more or we didn't reverse it. It's in there twice as of March. So that's why we're going to have to reverse it. The other sides back on the balance sheet, back to the balance sheet and the payable account down here for the taxes. If I go into that, now I've got this journal entry in the taxes, which I don't think it's going to mess up my sub ledger reports when I use the tax widget thing or anything, but I'll reverse it. So everything I believe should work properly there. Again, if you're concerned about it, you can make another account called like sales tax payable adjusting entries. So you don't have to put it into the detail in there and it should work fairly well because it'll just be an other current liability account as opposed to doing that with accounts receivable. Because if I had to create another account for accounts receivable to post to not to mess up their sub ledger, I wouldn't want to make it an accounts receivable type account because then it'll have the same sub ledger issue. I would have to make it like an other current asset, which means it would be down here somewhere, not even next to the receivable. That's why it's a little bit funny to do that with a receivable. All right. And then inventory, if I go into the inventory, I've got this journal entry that happened for the inventory right there. And the inventory is going to be out of whack. Now the whack is out. We whacked it out of something, the thing that it was in, because if I go to the inventory report right here and run it, we're now at 4346. As of March 31st, if I go back on over here, it says we're at 3946. Obviously, the difference is that journal entry that we entered, right? 3946 minus 4346, which is the $400 difference. So we're going to have to reverse it and then we'll be back, we'll whack it back into place. We'll whack it into place instead of out of place. So and then the cost of goods sold, of course, has been recorded here February. There's our adjusting entry. And so there's the other side, or it has been recorded twice here. So now we've got everything. We've entered the other, the whole thing with a journal entry as of the cutoff date, making things correct from a financial statement perspective, as of the February 28th, the cutoff date. But now it's going to be duplicated in March and so therefore we're going to have to do a reversing entry and we'll do that next time. So that is that. Let's open up our reports. So if I go to the, let's just go to the tab to the right and I'm going to open up the hamburger, scroll down to the reports on the left. If I look at my journal reports, journal reports, now we've got our adjusting entries. Let's make this 022823 to 022823, run it and there's the adjusting entries and we're going to customize it up top to look at the filters and just look at the transaction journal type of entries. And there's the entries we've made. There's the longer entry we just did. We're going to reverse it next time. Now let's go to the tab to the right, open up the hamburger reports, look at the trial balance to see where we stand. Trial balance and we've got to see where we stand 010123 to 033123 side by side with the months, run it. Okay, this is where we are as of now. If you're standing where we stand, we're like we've got six legs. We're like one of those animals that are on that avatar where they all have six limbs except for the people for some reason. We're like there. So we're standing on our six legs and if your six legs are standing in the same location, that's good. If not, we'll do another journal report at the end of the adjusting entries to double check and drill down on any differences.


Last class we have seen about these trace elements which are required less than 100 milligrams per day and we have seen what are the sources of trace elements and what are the symptoms that occur when you take excess of these trace elements and what occurs when they are deficient in our diet. So last class we have seen about zinc and iron, let us continue with the next trace elements. So copper is another minor element or minor mineral which is required in the body but still it has a very important role in the body. So this has a very important role in all the metabolic reactions and found in a variety of foods like oyster, lobster and crab. Then plant sources are kale and avocado and it is available also in nuts, seeds and mushrooms and the recommended dietary allowance for this is only 2 milligrams per day and but still when this 2 milligrams is not available to the body the deficiency causes anemia, leukopenia that is the less number of leukocytes or WBC in the blood and osteoporosis that is the bones become porous and tend to be fractured because the calcium absorption also require copper for its absorption. Toxicity is not very common but high amount leads to liver damage. So these are the food sources you can see. The next another important, very important mineral which affects our energy metabolism is iodine. So the main role of the iodine is promoting the healthy thyroid function. So it helps the body to synthesize thyroid hormones that regulate the growth and metabolism in the body. So too much or too little of iodine can lead to conditions like if it is too much it is hypothyroidism and if it is too less it leads to hypothyroidism. Now food sources where do we get this iodine from? We get from seafood. Seafood is the main source of iodine as well as seaweed and it is also found in little amounts in potatoes, eggs and milk. So the deficiency of iodine causes goiter in adults, creatinism in newborn.  Now the problems due to deficiency and excess of iodine intake so when you take less amount of iodine in your diet or the diet is deficient you are prone to hypothyroidism. So excessive iodine and the iodine interferes with the manufacture of thyroid hormones it results in low thyroid hormone levels or hypothyroidism. Similarly the symptoms of hypothyroidism include fatigue there is lot of weight gain because iodine is required for energy metabolism and the energy metabolism is decreased by 50 percent. Therefore whatever little energy is taken in is stored as fat therefore there is weight gain and there is dry skin and intolerance to changes in temperature. And too much of iodine also causes thyroid diseases including Hashimoto's disease. Hashimoto's disease is an autoimmune disease which attacks the thyroid gland and Graves disease again is the cells of the thyroid gland itself they have autoimmune action against the thyroid gland and it also causes thyroid cancer. Now deficiency of iodine when there is lack of iodine the trace element that is iodine it may result in goiter. So this has been an endemic disease in the lower regions of the hilly regions but now goiter can be seen in a large population in our country as well as creatinism in children which results in the developmental delays and other health problems. So iodine deficiency can lead to enlargement of thyroid gland and hypothyroidism and mental retardation in infants and children whose mothers were iodine deficient during pregnancy. So whenever the mother during her pregnancy has deficient iodine intake it affects the newborn and the child. You can see how the goiter the thyroid gland has enlarged in an adult and the creatinized the child with creatinism you see how weak the child is so there is no growth and there is mental retardation and the developmental delays are very slow. The next mineral is selenium selenium is again a very important mineral which acts as an antioxidant so it plays an important role in protection of body tissues against the oxidative stress and therefore on growth and development. The food sources of selenium are cereals, meat, fish and dairy products and you have in the other nuts like brazil nuts, legumes and fruits and vegetables and the amount is very less that is 40 micrograms per day. Now deficiency of selenium causes the infertility in men but the deficiency is very rare because this selenium deficiency occurs so very rarely because it is available in most of the force and it can also cause Cation's disease where it is a type of heart disease where the muscles of the heart are affected it is called as cardiomyopathy and it might also cause the cash in back disease which is a type of arthritis where all the bones and joints have a lot of pain swelling and loss of motion of joints. Another traceminal is manganese so this supports the enzyme function it is again a coenzyme in many of the reactions in the metabolism of carbohydrates, proteins and fats. So it is found widely in grains, nuts, legumes, green leafy vegetables and excess intake it causes poor growth, joint inflammation and low levels of manganese in the body can impair the glucose tolerance because it is involved in the carbohydrate metabolism, altered carbohydrate and fat metabolism. Then there are some skeletal abnormalities because it is involved in the bone growth and bone demineralization and malformation the RDA is very low and the food sources are you finding green vegetables, fruits, whole grains, legumes, spices almost all the foods are here which are rich in manganese. So again the deficiency is very rare the next mineral is chromium it improves the insulin action found in broccoli, brewers, yeast, molasses, barley oats and meat and so since it is involved in the insulin action the deficiency causes glucose intolerance and too much of chromium when it can also damage the liver, kidneys and nerves and it can also cause an irregularity in the rhythm of heartbeat. The foods high in chromium are red wine, broccoli, grape juice, whole wheat that is whole grains are important and potatoes always potatoes when they are rich in the minerals and vitamins they are along with the pill. Then more important fluoride in our life is it affects the skeleton and the teeth. So it provides strength to the bones and teeth improves resistance to the tooth enamel. So this as fluorine is found in water seaweed, tea and seafood so deficiency may cause dental caries and excess may cause dental and skeletal fluorosis and the recommended dietary allowance is 1 parts per million. So dental fluorosis you can see the discoloration of teeth and there is also pitting of and mottling of the teeth which is a permanent damage of teeth because of deficiency of fluorine. And skeletal fluorosis whenever the fluorine is excess you just see how the bone deformation occurs and the individual cannot walk on his own as to take a help of a stick. Grape denom is again a co-factor for several enzymes found in milk, cheese, legumes, dark green, leafy vegetables, cereals and nuts. And effects of deficiency and excess are very rare because all these foods are available in large quantity and available everywhere and RDA is very low. And these are the foods for rich in you can see all the fruits and vegetables and cereals grains nuts and beans everything has molybdenum in them. So therefore we have seen the trace elements all the 9 trace elements though they are required in small quantities what is the havoc they create in our body system and how they affect the health. Therefore when we have a balanced diet we can meet the requirements because the requirement is very low for all these minerals thank you.