Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
2nd Edition
ISBN: 9781337912259
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 22, Problem 12RE
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Since it started its operations in 2019, Valdo Co. carried no allowance for doubtful accounts.
Uncollectible receivables were expensed as written off and recoveries were credited to
income as collected. On March 1, 2023(after the financial statements were issued),
management recognized that Valdo accounting policy with respect to doubtful accounts was
not correct, and determined that an allowance for doubtful accounts was necessary.
Data for the five years follow:
2019
2020
2021
2022
2023
Credit sales
2,100,000
1,850,000
2,050,000
2,000,000
2,000,000
Accounts written off
20,000
40,000
130,000
22,000
113,000
The year-end balance of accounts receivable are as follows:
December 31, 2022 - P1,000,000
December 31, 2023 P1,200,000
Recoveries
15,000
20,000
5,000
20,000
40,000
Bad debts are provided for as a percentage of sales.
a) The percentage to be used to compute for the allowance for bad debts on
December 31, 2023 would be
b) How much would be the doubtful accounts expense for 2023?
c)…
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?
In 2018, the internal auditors of Development Technologies, Inc., discovered that (a) 2017 accrued wages of$2 million were not recognized until they were paid in 2018, and (b) a $3 million purchase of merchandisein 2018 was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Ignoringincome taxes, what journal entries are needed in 2018 to correct each error? Also, briefly describe any othermeasures Development Technologies would take in connection with correcting the errors
Chapter 22 Solutions
Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
Ch. 22 - Prob. 1GICh. 22 - Prob. 2GICh. 22 - Prob. 3GICh. 22 - What steps are necessary to apply the...Ch. 22 - Prob. 5GICh. 22 - Prob. 6GICh. 22 - Prob. 7GICh. 22 - Prob. 8GICh. 22 - Define a change in estimate. What is the proper...Ch. 22 - Prob. 10GI
Ch. 22 - How is a change in depreciation method accounted...Ch. 22 - Describe a change in a reporting entity. How does...Ch. 22 - Prob. 13GICh. 22 - Prob. 14GICh. 22 - Prob. 15GICh. 22 - Prob. 16GICh. 22 - Prob. 17GICh. 22 - Prob. 18GICh. 22 - Prob. 19GICh. 22 - Prob. 20GICh. 22 - The cumulative effect of an accounting change...Ch. 22 - When a change in accounting principle is made...Ch. 22 - Prob. 3MCCh. 22 - A change in the expected service life of an asset...Ch. 22 - Prob. 5MCCh. 22 - Generally, how should a change in accounting...Ch. 22 - Prob. 7MCCh. 22 - A company has included in its consolidated...Ch. 22 - Prob. 9MCCh. 22 - Prob. 10MCCh. 22 - Prob. 1RECh. 22 - Prob. 2RECh. 22 - Prob. 3RECh. 22 - Prob. 4RECh. 22 - Bloom Company had beginning unadjusted retained...Ch. 22 - Suppose that Blake Companys total pretax...Ch. 22 - Bliss Company owns an asset with an estimated life...Ch. 22 - At the end of 2016, Framber Company received 8,000...Ch. 22 - Prob. 9RECh. 22 - Prob. 10RECh. 22 - Prob. 11RECh. 22 - Prob. 12RECh. 22 - The following are independent events: a. Changed...Ch. 22 - Prob. 2ECh. 22 - The following are independent events: a. A...Ch. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - The following are independent errors made by a...Ch. 22 - The following are independent errors made by a...Ch. 22 - Refer to the information in E22-13. Required:...Ch. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 1PCh. 22 - Prob. 2PCh. 22 - Prob. 3PCh. 22 - Prob. 4PCh. 22 - Prob. 5PCh. 22 - Prob. 6PCh. 22 - Prob. 7PCh. 22 - At the beginning of 2017, Holden Companys...Ch. 22 - Prob. 9PCh. 22 - Prob. 10PCh. 22 - Prob. 11PCh. 22 - Prob. 12PCh. 22 - Prob. 13PCh. 22 - Prob. 14PCh. 22 - There are three types of accounting changes:...Ch. 22 - Prob. 2CCh. 22 - Prob. 3CCh. 22 - When the FASB issues a new generally accepted...Ch. 22 - It is important in accounting theory to be able to...Ch. 22 - Prob. 6CCh. 22 - Prob. 7CCh. 22 - Prob. 8CCh. 22 - Prob. 9CCh. 22 - Prob. 10C
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