Consider this scenario:You are performing specific item testing over accounts receivable balances for alarge airline parts manufacturer. Due to the bespoke nature of the parts sold, theentity sells the majority of its products to a handful of companies worldwide. Thetotal accounts receivable balance subject to testwork is CU4,800,000.PM has been established at CU1,500,000. Based on the information providedwhich selection criteria would you use?Select all invoices over CU400,000 which leaves an untested populationof CU1,600,000.Select all invoices over CU50,000 which leaves an untested population ofIzero.Select all invoices over CU250,000 which leaves an untested populationof CU840,000.Select all invoices over CU550,000 which leaves an untested populationof CU2,400,000.

Key ConsiderationsPerformance Materiality (PM): CU1,500,000 is the established performance…

Answered: Consider this scenario: You are…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 7PA: Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then...

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One of your clients who is engaged in the minimarket has a variety of supplies (heterogeneous inventory) and has 50 branches spread across East Java. As an auditor who must be sure of the physical balance of inventory, what are your considerations in selecting which supplies and branches to sample (Explain using logical assumptions)
Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C. Comparison i*, % Δi*, % A to DN 23.4 B to DN 8.1 C to DN 16.6 B vs. A −5.1 C vs. A 12.0 C vs. B 83.9 Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company’s MARR of 16% per year, the alternative to select is: (a) A (b) B (c) C (d) DN
The audit team is preparing to audit a new client in the toy retail industry. The client imports items from manufacturers in several Asian countries and retails them in a chain of shops located throughout the country. You have access to the following information for the client: prior period financial reports anticipated results for the current year industry averages. Required: Explain how you would use the information to understand your new client.
Mini Case Read the following case situations and answer the questions that follow: Fewa Securities Inc. has decided to acquire a new market data and quotation svstem its Pokhara home office. The system receives current market prices and o information from several on-line data services, then either displays the information a screen or stores it for later retrieval by the firm's brokers. The system also permi customers to call up current quotes on terminals in the lobby. The equipment costs R. 500,000, and, if it were purchased, Fewa could obtain a term loan for the full purchase price at a 10 percent interest rate. The equipment is is depreciated on straight line method over 4-year life. Expected salvage value is Rs 50,000. As an alternative to the borrow-and-buy plan, the equipment manufacturer informed Fewa that consolidated leasing would be willing to write a 4-year lease on the equipment, including maintenance, for percent. You have been asked to analyze the lease-versus-purchase…
Case scenario: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the inventory cost based on purchases and sales for the month. SEE ATTACHED for Numbers Find the inventory total cost and weighted average cost for the month, i.e., all of the records of data. Enter values for the next eight rows, Row 3 through 10, in the table below. Do…
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Ohio Logistics manages the logistical activities for firms by matching companies that need products shipped with carriers that can provide the best rates and best service for the companies. Ohio Logistics is very concerned that its carriers deliver their customers material on time, so it carefully monitors the percentage of on-time deliveries. The following table contains a list of the carriers used by Ohio Logistics and the corresponding on-time percentages for the current and previous years. a. Sort the carriers in descending order by their current years percentage of on-time deliveries. Which carrier is providing the best service in the current year? Which carrier is providing the worst service in the current year? b. Calculate the change in percentage of on-time deliveries from the previous to the current year for each carrier. Use Excels conditional formatting to highlight the carriers whose on-time percentage decreased from the previous year to the current year. c. Use Excels conditional formatting tool to create data bars for the change in percentage of on-time deliveries from the previous year to the current year for each carrier calculated in part b. d. Which carriers should Ohio Logistics try to use in the future? Why?
Please provide an answer along with an explanation, and clarify whether each option is correct or incorrect.
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The operation manager of Marcoba Bhd is seeking your advice on his company's request for a computer software to be used in managing the sales of the company. He is unsure of how to obtain the computer software but realizes that different types of acquisition will impact the company's financial statement differently. He is considering the following possibilities: a) Making a purchase of the computer software externally. The quotation that he has received includes packages for payroll and general ledger. b) Making a purchase of a computer software that can be incorporated into a sales system that the company will develop. c) Signing a contract with independent programmers to develop a computer software that will specifically cater for Marcoba Bhd's own use d) Employing own programmers to write a computer software that the company will use. Required: Advice the operation manager on the impact of each possibility above on the company's financial statement
Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.
You are working as a summer intern for AAA Auditing. You have been asked to help resolve discrepancies noted in the audit for Dolfin Company, a retailer of specialty aquarium supplies. As a merchandising company, Dolfin Company uses the perpetual inventory system. To prepare for this assignment, you have been asked to review your knowledge of sales and purchase transactions by completing the following table. Consider the effect of each transaction on the three accounts listed, then use checkmarks to identify which accounts are debited or credited. If none of these accounts is affected by the transaction, check the “No Effect” box. Merchandise Inventory Estimated Returns Inventory Cost of Merchandise Sold No Effect Debit Credit Debit Credit Debit Credit Purchase of merchandise for resale Customer returns Customer payment on account Payment of service…

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