Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.

Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5C: It is February 16, 2020, and you are auditing Davenport Corporation's financial statements for 2019...

See similar textbooks

Similar questions

In your audit of Ledo Plastic Corporation , you noted that the company’s statement of financial position shows the accounts receivable balance as at December 31, 2020 as follows : Accounts Receivable P 3,600,000 Allowance for Doubtful Accounts 72,000 P 3,528,000 During 2021 , transactions relating to the accounts were as follows: Sales on account , P 38,400,000 Cash received from collection of current receivable totaled P 31,360,000 after discount of P 640,000 were allowed for prompt payment Customer’s accounts of P 160,000 were ascertained to be worthless and were written off Bad debts accounts previously written prior to 2021 amounting to P 40,000 were recovered The company decided to provide for P 184,000 for doubtful accounts by journal entry at the end of the year Accounts receivable of P 5,600,000 have been pledged to a local bank on a loan of P 3,200,000. Collections of P 1,200,000 were made on these receivables (not…
In your audit of Pink Corporation’s liabilities accounts in relation to the company’s financial statements audit for the period ended December 31, 2020, an excerpt of the company’s unadjusted trial balance showed the following information: Accounts payable, net of a P12,000 debit balance P399,000 Accrued expenses 17,400 Provision for warranties 276,375 12% Notes payable, Bank due December 31, 2023 500,000 Audit notes: (A) Purchases cut-off procedure information: December Purchases Journal Entries RR Number Receiving Report Date Amount Particulars 82101 Dec. 26, 2020 P12,900 FOB Destination 82102 Dec. 28, 2020 15,200 FOB Shipping Point 82103 Dec. 29, 2020 11,900 On consignment 82105 Dec. 31, 2020 9,500 FOB Destination 82106 Jan. 2, 2021 13,200 Goods in transit; FOB Buyer 82107 Jan. 3, 2021 8,900 Goods in transit; FOB Shipping Point January Purchases…
A company reported net income of 9.3 million; 10.3 million and 9.7 million for the years 2020, 2021 and 2022 respectively. In an audit conducted in 2022, the following was determined: a. Harry failed to accrue interest on the following notes. It was revealed that Harry recognizes the total interest income on the notes upon its collection on its due date. Principal Date Received Interest Due Date Note receivable - A 500,000 June 1, 2020 12% October 1, 2021 Note receivable - B 400,000 May 31, 2021 15% June 30, 2022 Note receivable - C 750,000 October 31, 2020 18% November 30, 2022 b. Harry paid 15 months' rent on June 1, 2022 amounting to 210,000. Harry uses the asset method in recording prepayments. No adjustments were made yet concerning this. c. Payment of salaries in 2020 amounting to 380,000 was inadvertently charged against the cash on hand. It should have been charged to cash in bank. d. The ending inventory in 2020 is overstated by 450,000 while the beginning inventory in 2022 is…
In connection with your examination of the financial statements of Ringo, Inc. for the year ended December 31, 2020, you were able to obtain certain information during your audit of the accounts receivable and related accounts. The December 31, 2020 balance in the Accounts Receivable control account is P837,900.An aging schedule of the accounts receivable as of December 31, 2020 is presented below: Age Net Debit Balance Percentage to be applied after corrections have been made 60 days & under P387,800 1 percent 61 to 90 days 307,100 2 percent 91 to 120 days 89,800 5 percent Over 120 days 53,200 Definitely uncollectible, P9,000; the remainder is estimated to be 25% uncollectible. P837,900 The Allowance for Doubtful Accounts schedule is presented below: Debit Credit Balance January 1, 2020…
In connection with your examination of the financial statements of Ringo, Inc. for the year ended December 31, 2020, you were able to obtain certain information during your audit of the accounts receivable and related accounts. The December 31, 2020 balance in the Accounts Receivable control account is P837,900.An aging schedule of the accounts receivable as of December 31, 2020 is presented below: Age Net Debit Balance Percentage to be applied after corrections have been made 60 days & under P387,800 1 percent 61 to 90 days 307,100 2 percent 91 to 120 days 89,800 5 percent Over 120 days 53,200 Definitely uncollectible, P9,000; the remainder is estimated to be 25% uncollectible. P837,900 The Allowance for Doubtful Accounts schedule is presented below: Debit Credit Balance January 1,…
Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen Company had a balance of P 2,865,000. An analysis of the accounts receivable account showed the following: Accounts known to be worthless P 37,500 Advance payments to creditors on purchase orders 150,000 Advances to affiliated companies 375,000 Customer’s accounts reporting credit balances arising from sales return (225,000) Interest receivable on bonds 150,000 Other trade accounts receivable -unassigned 750,000 Trade accounts receivable – assigned ( Eileen Company’s equity in assigned accounts is P 150,000) 375,000 Subscription receivables due in 30 days 825,000 Trade installment receivable due 1-18 months including unearned finance charges of P 30,000 330,000 Trade receivables from officers due currently 22,500 Trade accounts on which post-dated…
20. The trade accounts receivable balance as at December 31, 2021 is A. P 1,522,500 B. P 1,147,500 C. P 1,485,000 D. p 1,447,500 21. The net current trade and other receivables as at December 31, 2021 is A. P 1,822,500 B. P 2,272,500 C. P 2,647,500 D. P 2,610,000 22. How much of the foregoing will be presented under noncurrent assets as at December 31, 2021? Α. ΡΟ B. P 375,000 C. P 525,000 D. P 1,200,000
Analysis of accounts receivable reveals that with two exceptions, all appeared collectible as at December 31, 2021. These are: b.) The company’s receivable from Redding Corporation in the amount of P58,000 was written off as uncollectible during the year based on the suggestion of the company’s legal counsel. However, on January 25, 2022, two months before the issuance of the audited financial statements, P8,000 was received as final settlement on this account. Required: Adjusting entries
The following Is a portion of the current assets section of the balance sheets of Avantl's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for bad debts of $9,884 and $18,755, respectively $178,387 $223,883 Requlred: a. If $11,579 of accounts recelvable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint. Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) Bad debt expense b. The December 31, 2020, Allowance account balance Includes $3,017 for a past due account that is not likely to be collected. This account has not been written off. |(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020? Yes No (2) If It had been written off, will there be any effect of the write-off on net Income and ROI for the year ended December 31, 2020? Yes No c. The level of Avantı's sales…
9999...last recheck You have completed the field work in connection with your audit of Carla Corporation for the year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31,2020 Dec. 31,2019 Increase or(Decrease) Cash $311,248 $333,760 ($22,512 ) Accounts receivable 525,755 395,360 130,395 Inventory 830,704 683,200 147,504 Prepaid expenses 13,440 8,960 4,480 Investment in subsidiary 123,760 0 123,760 Cash surrender value of life insurance 2,580 2,016 564 Machinery 231,840 212,800 19,040 Buildings 599,424 456,848 142,576 Land 58,800 58,800 0 Patents 77,280 71,680 5,600 Copyrights 44,800 56,000 (11,200 ) Bond discount and issue cost 5,042 0 5,042 $2,824,673 $2,279,424 $545,249…
A balance sheet extract of Kahwati Ltd. reported as at 30 June, 2020; Accounts Receivable $981 485 Allowance for Doubtful Debts (18 950) The company recorded the following for the year ending 30 June, 2021: Credit sales income totalling, $1 638 000 Credit sales returns totalling, $21 360 Accounts receivable collections, $1 893 000 Accounts receivable written off – uncollectable $17 695 Based on ageing of accounts receivable analysis undertaken at the end of June, 2021 the company decided that the Allowance for Doubtful Debts account should have a credit balance of $21 250 on the Balance Sheet at June 30, 2021
The following accounts were included in the unadjusted trial balance of Editah Company as of December 31, 2019:Cash 963,200Accounts receivable 2,254,000Inventory 6,050,000Accounts payable 4,201,000Accrued expenses 431,000 During your audit, you noted that Editah Company held its cash books open after year-end. In addition, your audit revealed the following:1. Receipts for January 2020 of P654,600 were recorded in the December 2019 cash receipts book. The receipts of P360,100 represent cash sales, and P294,500 represent collections from customers, net of 5% cash discounts.2. Accounts payable of P372,400 was paid in January 2020. The payments, on which discounts of P12,400 were taken, were included in the December 2019 check register.3. Merchandise inventory is valued at P6,050,000 before any adjustments. The following information has been found relating to certain inventory transactions:a. The invoice for goods costing P175,000 was received and recorded as a purchase on December 31,…