The following errors were discovered in the course of examination of the Kamuning Company's financial records: *Year 2020 wages payable for P34,000 was not recorded. *Accrued vacation pay for the year 2020 for P62,500 was not recorded because the bookkeeper "never learned that you had to do it". *Insurance for a 12-month period purchased on November 1, 2020 was charged to expense in the amount of P37,200 because "the amount of the check is about the same every year". What is the net effect of the above errors on the January 1, 2021 accumulated profits? A P127,500 over B P59,300 over P65,500 over D P96,500 over

The following errors were discovered in the course of examination of the Kamuning Company's financial records: Year 2020 wages payable for P34,000 was not recorded. Accrued vacation pay for the year 2020 for P62,500 was not recorded because the bookkeeper "never learned that you had to do it". *Insurance for a 12-month period purchased on November 1, 2020 was charged to expense in the amount of P37,200 because "the amount of the check is about the same every year". What is the net effect of the above errors on the January 1, 2021 accumulated profits? A P127,500 over B P59,300 over P65,500 over D P96,500 over

Name: The following errors were discovered in the course of examination of
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: The following errors were discovered in the course of examination of the Kamuning Company's financial records:*Year 2020 wages payable for P34,000 was not recorded.*Accrued vacation pay for the year 2020 for P62,500 was not recorded because the book

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 12RE: Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery...

See similar textbooks

Similar questions

Timmons Company had a January 1 credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year: Apr. 15 Bard’s account receivable of $5,700 was deemed un-collectable. July 1 Drake paid the full amount of a previously written-off account receivable. This receivable of $2,300 had been written off in the prior year. Dec. 31 Bad debts expense of $7,500 was recorded. What amount should appear in the allowance for doubtful accounts in the December 31 balance sheet for the current year?
The following errors were discovered during the financial year ended 28 February 2021. a) A debtor that was owing N$ 600 was erroneously written-off as bad debt; b) Cash receipt of $300 was recorded as bank receipt; c) A payment of N$ 1 500 received from a customer was recorded on supplier; d) Credit sales of N$ 4 300 was recorded to supplier account; Page 18 of 19 e) Bank charge of $420 was completely omitted from the records; f) Stationery purchased of $ 580 was debited to advertisement; g) Printing that was purchased by EFT was completely ignored in the books, $630; h) A customer that was owing $1 250 was declared bankrupt and the transaction was not recorded; i) The owner withdraws a cheque for $900 and deposited in the business; j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight line and no residual value. k) Depreciation for computer equipment was not provided for. Depreciation as at 15%, straight line with N$ 2 000 residual value. REQUIRED…
The following errors were discovered during the financial year ended 28 February 2021.a) A debtor that was owing N$ 600 was erroneously written-off as bad debt;b) Cash receipt of $300 was recorded as bank receipt;c) A payment of N$ 1 500 received from a customer was recorded on supplier;d) Credit sales of N$ 4 300 was recorded to supplier account; Page 18 of 19e) Bank charge of $420 was completely omitted from the records;f) Stationery purchased of $ 580 was debited to advertisement;g) Printing that was purchased by EFT was completely ignored in the books, $630;h) A customer that was owing $1 250 was declared bankrupt and the transaction was notrecorded;i) The owner withdraws a cheque for $900 and deposited in the business;j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight lineand no residual value.k) Depreciation for computer equipment was not provided for. Depreciation as at 15%,straight line with N$ 2 000 residual value.REQUIREDPrepare a…
BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its business three years ago. The accruals and prepayments at the end of 2021 are as follows: Unused office supplies 25,000 Accrued utilities 52,000 Rent revenue collected in advance 87,500 Interest receivable 65,500 Accrued wages 49,100 Prepaid insurance 60,000 4What is the net effect of the above errors in the 2021 netincome? (If understated, put a negative (-) sign before thenumerical value)
On January 1, 2021, allowance for doubtful accounts showed a normal balance of P 60,000. During 2021, Cook provided doubtful accounts expense at P 128,000, derecognized in accounting books worthless accounts of P 92,000, and unexpectedly recovered P 24,000 of bad debts written off two years ago. QUESTION: What would be the allowance for doubtful accounts at December 31, 2021?
At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
36. Akito Company uses the statement of financial position approach in estimating uncollectible accounts expense. The entity prepares an adjusting entry to recognize this expense at the end of the year. During the year, the entity wrote off a P100, 000 receivable and made no recovery of previous write-off. After the adjusting entry for the year, the credit balance in the allowance for doubtful accounts was P250, 000 larger than it was on January 1. What amount of uncollectible account expense was recorded for the year?
On December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected Credit Losses had an unadjusted debit balance of $1,900, Runner Corp. estimated that $15,800 of its accounts receivable account would become uncollectible, and it recorded the credit losses adjusting entry. On May 11, 2024, Runner determined that Fei Ya Cheng's account was uncollectible and wrote off $1,800. On November 12, 2024, Cheng paid the amount previously written off. (a) Your answer is partially correct. Prepare the required journal entries to record each of the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement.) 2023 (b) Date Account Titles and Explanation Dec. 31 No Entry 2024 No Entry Date Account Titles and…
Assume the aging of accounts receivable method was used by the company and that $7050 of the accounts receivable as of Dec 31 were estimated to be uncollectible. You are now required to: a) Determine the amount to be charged to uncollectible expense( show your workings for the computation of this figure).
Ray Company, your client, failed to record accrued rent income of P 25,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 25,000 at the end of year 2022 as a result of the error? Question 2: Which of the following accounts is(are) overstated by P 25,000 at the end of year 2023 as a result of the error? Question 3: What would be the adjusting entry if the error is discovered in year 2022? Question 4: What would be the adjusting entry if the error is discovered in year 2023? Question 5: What would be the adjusting entry if the error is discovered in year 2024?
One company has a debit balance of $11325 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, One company estimates that $1452 of its receivables are uncollectible. As a result it will debit Bad Debts Expense for what amount?
On December 31, 2020, Trivalence Mining Corp. had the following records relating to its Accounts Receivable and the Allowance for Bad Debts. The ending Accounts Receivable balance does not reflect Write-Offs or Recoveries. Beginning Allowance 245 Ending A/R 2450 Write offs 368 Recoveries 172 Required: Calculate Net Accounts Receivable for the year ended December 31, 2020. The company estimates that 11% of Accounts Receivable are likely to be uncollectible. 2089 2334 2205 2006 1853 None of these answers is correct.