Exercise 9. Effects of errors on financial statements The accountant for Maxim Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue, P10,390 and (b) accrued wages, P2,440. Indicate the effect of each error, considered individually, on the SCI for the current year ended December 31. Also indicate the effect of each error on the December 31 SFP. Record your answers by inserting the P amount in the appropriate spaces. Insert a zero if the error does not affect the item. Error (a) Error (b) Over- Over- stated stated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be 4. Assets at December 31 would be 5. Liabilities at December 31 would be 6. Owner's equity at December 31 would be Under- stated Under- stated

Exercise 9. Effects of errors on financial statements The accountant for Maxim Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue, P10,390 and (b) accrued wages, P2,440. Indicate the effect of each error, considered individually, on the SCI for the current year ended December 31. Also indicate the effect of each error on the December 31 SFP. Record your answers by inserting the P amount in the appropriate spaces. Insert a zero if the error does not affect the item. Error (a) Error (b) Over- Over- stated stated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be 4. Assets at December 31 would be 5. Liabilities at December 31 would be 6. Owner's equity at December 31 would be Under- stated Under- stated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8.3 At the end of the current year, the accounts receivable account has a debit balance of $1,935,000 and sales for the year total $26,710,000. The allowance account before adjustment has a debit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions c listed above.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) On December 31, a company has outstanding accounts receivable of $69,000, and it estimates that 3% of its receivables will be uncollectible. Prepare the adjusting journal entry at year-end to record bad debts expense if the Allowance for Doubtful Accounts has a: $1,173 credit balance before the adjustment. $345 debit balance before the adjustment.
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Hi,I am having a terrible time trying to understand when the balance in the allowance for doubtful account is involved in the final answer, and when it is not. Will you please explain why the answers are what they are in the attachment?
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 47,000 Accounts receivable Percent uncollectible Req A Complete this question by entering your answers in the tabs below. Req B and C Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,700 credit. Accounts Receivable c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,200 debit. X Total O $625,000 $ 407,000 X X X Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. X Percent Uncollectible (%) = 3%…
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,710. Line Item Description Amount Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $973,000 for the year. Line Item Description Amount Amount added $fill in the blank 3 Ending balance $fill in the blank 4
Questions: a. What is the correct bad debt expense for the year assuming that the allowance for doubtful accounts had a balance of P120,500 as of January 1, 2022? b. Your proposed adjusting journal entry to correct the balance of allowance for bad debts would include a net debit or credit of? (just indicate the amount)
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Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,040. Amount added Ending balance b. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $1,009,000 for the year. Amount added Ending balance
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