Effect of Omitting Adjustments For the year ending April 30, Beckinworth Medical Services Co. mistakenly omitted adjusting entries for (1) $6,700 of supplies that were used, (2) unearned revenue of $11,300 that was earned, and (3) insurance of $2,500 that expired. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended April 30. (a) Revenues   $fill in the blank 2 (b) Expenses   $fill in the blank 4 (c) Net income   $fill in the blank 6

For each of the following scenarios, indicate the amount of the adjusting journal entry for Bad Debt Expense to be recorded, the balance in Allowance for Doubtful Accounts after adjustment at December 31, and the net realizable value of Accounts Receivable at December 31. a.  Based on an analysis of Simmons Company's $380,000 balance in Accounts Receivable at December 31, it was estimated that $15,500 will be uncollectible. There is a credit balance of $1,200 in Allowance for Doubtful Accounts before adjustment. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31   Net Realizable Value of Accounts Receivable at Dec. 31   b.  Blake Company had credit sales of $900,000 at year-end, an Accounts Receivable balance of $425,000 at December 31, and an Allowance for Doubtful Accounts credit balance of $11,000 before adjustment. Blake estimates bad debt expense as ¾ of 1% of credit sales. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31   Net Realizable…

On December 31 before adjusting entries, a company's balance of Allowance for Doubtful Accounts is a debit of $2,000. What does a "debit" balance prior to adjusting entries indicate? The company's estimate equals actual bad debts. Last year's estimate of bad debts was too high. Last year's estimate of bad debts was too low. The company did not estimate bad debts last year.

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In order to generate interim financial reports that contain a reasonable portion of annual expenses, which of the following statements is true? a. an allocation of a portion of an annual bonus would be made as an interim adjustment b. any adjustments for inventory shrinkage would be deferred to year end c. the allowance for uncollectible accounts receivable will be revised at year end d. None of the above are true