Bad debts expense 9‚000 Allowance for doubtful accounts 9‚000 To record allowance for credit losses (0.01 x $900‚000 = $9‚000). b. Current Assets: Accounts receivable $150‚000 Less: Allowance for doubtful accounts 19‚200 $130‚800 E8-2A. Credit Losses Based on Accounts Receivables (LO1‚ LO2) a. General Journal Date Description Debit Credit Dec. 31 Bad debts expense 2‚930 Allowance for doubtful accounts 2‚930 To record allowance for credit losses:
Premium Accounts receivable Balance sheet Generally Accepted Accounting Principles
The internal controls provide a safeguard against errors in the accounting system as well as the detection and prevention of fraud. With the inflows of the company come many risks that need to be considered. The ways in which cash‚ sales‚ accounts receivable‚ inventory‚ and production are handled within the company are different for each division. The internal controls may vary from department to department‚ but the end result is to protect the company from the risks that can arise. Cash Cash
Premium Accounts receivable Internal control Balance sheet
Chapter 16 “How Well Am I Doing?” Financial Statement Analysis Solutions to Questions 16-1 Horizontal analysis examines how a particular item on a financial statement such as sales or cost of goods sold behaves over time. Vertical analysis involves analysis of items on an income statement or balance sheet for a single period. In vertical analysis of the income statement‚ all items are typically stated as a percentage of sales. In vertical analysis of the balance sheet‚ all items are typically
Premium Balance sheet Generally Accepted Accounting Principles Financial ratios
Thea‚ nice work on the paper! You answered almost every question competently and thoroughly. The only question you might have done better on is Q10 for more detail on the rules that apply.. Thank you! Worksheet for You Decide Name Thea Zental____ Course Code AC 555_____ Grade ___ Date 02/19/2012 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods‚ Inc. Solution: The SEC (Securities and Exchange Commission) has a great influence on the audit
Premium Audit Auditing Internal control
The Overall of the Company Chapter 1: Introduction Industrial training (BIT 3034) is a compulsory subject for all students in Multimedia University which to help the students be confidently prepared and move their steps into real working environment before their graduation. In addition‚ it is also to help students to have the future opportunity of employment after they graduate. Exposing students to join companies as trainee is to cultivate them on adapting the real-working life. Students will
Premium Accounts receivable Credit card General ledger
opinion c. Increase the sample size for tests of controls d. Expand the substantive testing portion of the audit 4. The real-time feature normally would be least useful when applied to accounting for a firm’s a. Bank-account balances b. Property and depreciation c. Customer accounts receivable d. Merchandise inventory 5. A sample in which the characteristics in the sample are the same as those of the population is a a. Random sample c. Attributes sample b. Variables sample d. Representative sample 6. Establishing
Premium Internal control Audit Balance sheet
BFN1014 Financial Management I (Semester 53) BFN1014 Financial Management I TUTORIAL 1 (Week 2): Tutorial Questions Chapter 1: The Role of Managerial Finance Review Questions 1-3 Which legal form of business organization is most common? Which form is dominant in terms of business revenues? What is the goal of a firm and‚ therefore‚ of all managers and employees? Discuss how one measures achievement of this goal. What are the major differences between accounting and finance with respect to emphasis
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
Date: Thu‚ 17 JAN 2008 7:42:53 +0000 From: "Darlene Wardlaw" Subject: Understanding the Revenue Cycle Attachment: I’ve attached a Sales internal control questionnaire from another engagement that I think you can use for Apollo. You may want to talk to Karina Ramirez to get answers to the questions. 1. Complete the ICQ for Apollo. For “yes” answers‚ add a comment stating which department and clerk performs the function. For “no” answers‚ describe the possible “errors” or “frauds”
Premium Invoice Accounts receivable
performed accurately and on-time and set a reminder schedule for regular transactions. Display and alerts user on the due date of the recurring transactions .Access past transactions and create new transactions from the Bank Register Reconcile bank accounts as of a past date. Undo previous month’s bank reconciliation when reconciled in error. Enter interest earned and service fees from the Bank Reconciliation screen. Drill down from Bank Reconcile screen to original transactions .Enter bank statement
Premium Accounts receivable Accounting software Invoice
Problem 16-1 (Cash Management) Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales‚ how much cash will be freed up? Inventory = Sales / Inventory Turnover Ratio Inventory = $10 million / 2 = $5 Million Inventory = Sales / Inventory Turnover
Premium Accounts receivable Accounts payable Accounting software