What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
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What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
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- Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its business three years ago. The accruals and prepayments at the end of 2021 are as follows: Unused office supplies 25,000 Accrued utilities 52,000 Rent revenue collected in advance 87,500 Interest receivable 65,500 Accrued wages 49,100 Prepaid insurance 60,000 4What is the net effect of the above errors in the 2021 netincome? (If understated, put a negative (-) sign before thenumerical value)
- 68. The following information about Theresa Company is available at December 31, 2022: Employee income taxes withheld Cash balance at first state Bank Cash overdraft at Harbor Bank Accounts receivable with credit balance 900,000 2,500,000 1,300,000 750,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contact 1,500,000 Accounts payable 3,000,000 Deferred serial bonds, issued at par and bearing interest at 12%, payable in semiannual installments of P500, 000 due April 1 and October 1 of each year, the last bond to be paid on October 1, 2028. Interest is also paid semiannually. 5,000,000 Stock dividend payable 2,000,000 The December 31, 2022 balance sheet should report current liabilities at a. 8,100,000 b. 7,950,000 c. 9,100,000 d. 7,350,000The following information about Manchester Company is available on December 31, 2021. Income taxes withheld from employees P900,000 Cash balance at First State Bank – Account 101 2,500,000 Accounts receivable with credit balance 750,000 Cash overdraft at Second State Bank 1,310,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contract 1,500,000 Cash overdraft at Third State Bank – Account 102 10,000 Accounts payable 3,000,000Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installment of P500,000 due April 1and October 1 of each year , the last bond to be paid October 1, 2026. Interest will be paid fully on maturity of the note. 5,000,000Stock dividends payable 2,000,000 Compute the total current liabilities on December 31, 2021Milky Way Inc. provided the following information on December 31, 2021: .P 900,000 Employee income taxes withheld... Cash balance at BPI-Leon Guinto Branch. 2,500,000 1,300,000 750,000 500,000 Cash overdraft at BDO-A. Mabini Branch. Accounts receivable with credit balance. Estimated amount of meeting warranties.. Estimated damages as a result of unsatisfactory... 1,500,000 Accounts payable.... Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installments of P 500,000 due April land October 1 of each, the last bond to be paid on October 1, 2027. Interest is also paid semi-annually. . 3,000,000 5,000,000 What amount should be reported as total current liabilities on December 31, 2021?
- The following information about ABC Company is available at December 31, 2020: Employee income taxes withheld 1,000,000 Cash balance at BPI 10,000,000 Cash overdraft at BDO 1,500,000 Accounts receivable with credit balance 2,000,000 Estimated expenses of meeting warranties on merchandise previously sold 3,000,000 Estimated damages as a result of unsatisfactory performance on a contract 4,000,000 Accounts payable 8,000,000 Deferred serial bonds, issued at par and bearing interest at 12%, payable in semiannual installments of P500,000 due April 1 and October 1 of each year, the first bond to be paid on April 1, 2022. Interest is…At the end of its first year of operations, a company establishes an allowance for future uncollectible accounts for $5,600. At what amount would bad debt expense be reported in the current year's income statement? Multiple Choice O $6,400. $5,600. $4,800. $800.The F Company uses the allowance method is used to account for uncollectible receivables. It had the following transactions during the year: 05/2020 Received 75% of the P 20,000 balance owed by Webb Co., a bankrupt business. Wrote off remainder as uncollectible. 06/20 Reinstated the account of Zorn Co., amounting to P 5,225 which had been written off in the preceding year as uncollectible. 06/24 Received P 5,225 cash as full payment of Zorn’s account. 07/27 Wrote off the P 2,500 balance owed by Schmich, Inc. which had no assets. 12/31 Based on an analysis of Accounts Receivable, it is determined that P 11,500 will become uncollectible. The balance in Allowance for…
- Chec Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $39,000 $ 477,000 During 2021, credit sales were $1,795,000, cash collections from customers $1,875,000, and $44,000 in accounts receivable were written off. In addition, $3,900 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following: ces Percentage of Year-End Receivables in Group Percent Age Group 0-60 days 61-90 days 91-120 days Over 120 days Uncollectible 70% 5% 20 15 20 40 Required: 1. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…CI On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,338. During the first 11 months of the year, bad debts expense of $21,593 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,887. Required: a. What was the total of accounts written off during the first 11 months? (Hint Make a T-account for the Allowance for Bad Debts account.) Bad debts write-Off b. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $9,365. Show the adjustment required in the journal entry format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to adjust the allowance account to the appropriate balance. Note: Enter debits before credits. Event General Journal Debit Credit 1SM Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?