FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

 How much is the Doubtful accounts expense for 2019?

A. 47,000

B. 62,000

C. 63,500

D. 65,000

 What is the net amount of Accounts Receivables to be presented in the audited financial statements?

A. 873,000

B. 886,500

C. 900,000

D. 1,000,000

In your audit of the December 31, 2019 financial statement of Ivy Inc., your cut-off working paper showed the
following sales transactions posted in Accounts Receivable ledger for 2019:
DR No.
Date
Sales Amount
12/28/2019
12/29/2019
12/31/2019
1/3/2020
1/3/2020
38519
4,800
3,600
38520
38521
38522
6,000
3,000
7,200
38523
Additional information:
a. DR No. 38519 represents goods delivered to consignee. The goods remain unsold as at year-end.
b. Sales terms are FOB Shipping Point.
c. The Accounts receivable account shows an unadjusted balance of P1,000,000 as of December 31, 2019.
d. Management and auditor agreed to write-off P15,000 of accounts receivable and that the balance of the
allowance should be 10% of the adjusted accounts receivables.
The Allowance for Doubtful Account shows a January 1, 2019 balance of P50,000. No entries were made
to adjust the account for the year 2019.
е.
expand button
Transcribed Image Text:In your audit of the December 31, 2019 financial statement of Ivy Inc., your cut-off working paper showed the following sales transactions posted in Accounts Receivable ledger for 2019: DR No. Date Sales Amount 12/28/2019 12/29/2019 12/31/2019 1/3/2020 1/3/2020 38519 4,800 3,600 38520 38521 38522 6,000 3,000 7,200 38523 Additional information: a. DR No. 38519 represents goods delivered to consignee. The goods remain unsold as at year-end. b. Sales terms are FOB Shipping Point. c. The Accounts receivable account shows an unadjusted balance of P1,000,000 as of December 31, 2019. d. Management and auditor agreed to write-off P15,000 of accounts receivable and that the balance of the allowance should be 10% of the adjusted accounts receivables. The Allowance for Doubtful Account shows a January 1, 2019 balance of P50,000. No entries were made to adjust the account for the year 2019. е.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education