You are assigned to audit Ignation Inc. for the year ended June 30, 2022. Prior to any adjustments, you were able to extract the following balances from the client's records: Accounts receivable control account Allowance for bad debts beginning 30,150 Your audit client provided you the schedule of the accounts receivable subsidiary ledger based on ageing policy: Accounts with debit balances: 60 days old and below 61 to 120 days Over 120 days Accounts with credit balances Accounts receivable per GL P540,000 P230,000 270,000 75,000 P575,000 (35,000) P540,000
You are assigned to audit Ignation Inc. for the year ended June 30, 2022. Prior to any adjustments, you were able to extract the following balances from the client's records: Accounts receivable control account Allowance for bad debts beginning 30,150 Your audit client provided you the schedule of the accounts receivable subsidiary ledger based on ageing policy: Accounts with debit balances: 60 days old and below 61 to 120 days Over 120 days Accounts with credit balances Accounts receivable per GL P540,000 P230,000 270,000 75,000 P575,000 (35,000) P540,000
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...
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Question
Determine the following as a result of your audit:
a. What is the correct balance of the accounts receivable as of June 30, 2022?
b. What is the balance of the allowance for
c. What is the balance of bad debts expense in its income statement for year ended June 30, 2022?
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