in 2001 to the first quarter of 2002. By capitalizing these expenses‚ Worldcom managed to "produce" profits for five quarters that would have otherwise shown loses. As if that were not bad enough‚ other fraudulent accounting practices were unveiled going back to 1999. An additional $2 billion reserved for bad debts was improperly used to boost operating income. Other accounting manipulations included inflating profit-margin figures by arbitrarily reducing line costs and maintaining fake accounts on
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100‚000 (To record collection of accounts receivable) 4 Bad Debt Expense Allowance for Doubtful Accounts $92‚000 $92‚000 (To record uncollectible accounts) 5 Accounts Receivable Allowance to Doubtful Accounts Cash Accounts Receivable $28‚000 $28‚000 $28‚000 $28‚000 (To reverse write-off of debts previously considered uncollectable) (b) Enter the January 1‚ 2014
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Good Girl Gone Bad: Rihanna Since the beginning of time women have been uniquely viewed as a source of human life. Historically‚ however‚ they have been considered not only intellectually inferior to men but also a major source of temptation and evil. As one reflects back upon history he or she can easily conclude that women have made significant progress. Traditionally women roles were understood to be wifehood and motherhood. However‚ time has greatly changed and women have acquired several
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National Debt on the Economy | | | | Table of Contents Abstract………………………………………………………………………………………………………………………………………..3 Introduction………………………………………………………………………………………………………………………………….4 Literature Review………………………………………………………………………………………………………………………….9 Discussion…………………………………………………………………………………………………………………………………….10 References……………………………………………………………………………………………………………………………………11 Abstract This article discusses the shape the economy is in. Then the article examines what national debt is‚ and the
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the company estimated bad debt expenses of $15‚000. (3) On January 12‚ 2009‚ collect $100‚000 worth of accounts receivable. (4) After many collection attempts‚ the Company determined on June 15‚ 2009 that it would not collect $10‚000 in accounts receivables from Pendant Publishing. It decided to write-off this account. (5) On July 15‚ Pendant Publishing called to say that they have had financial problems but can afford to pay $7‚000 to settle their $10‚000 debt in full. Vandolay Industries
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due to the Bad Debt Expense estimation being based off 3% of net credit sales instead of the prior years’ estimate of 1.5%. The increase in Bad Debts expense as a result of the increase in estimate materially affected the 2012 earnings. However‚ 2012 had been a great year for earnings‚ so the additional expense did not disturb the earnings growth trend Nebobites’ had experienced in the past. However‚ upon further research‚ Jenny could find no justification for the increase in the Bad Debt Expense estimate
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this can also depend on the contract terms‚ for example‚ the failure to promptly pay interest or principal when due. Default occurs when a debtor is unable to meet the legal obligation of debt repayment. Borrowers may then default when they are unable to make the required payment or are unwilling to honor the debt. There are many causes of non-performing loans‚ such as asymmetric information between borrowers and lenders‚ and the downturn of the economy. According to Frederic S. Mishkin (2006)
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to think about the pros and cons‚ distinguish between a relaxed but rational working capital policy‚ to match the maturity of its assets and liabilities‚ SKI’s payables deferral period‚ reduce its cash and securities without harming operations‚ bad debts‚ cash budget‚ company’s cash position in the short run and in the long run and risks in credit policy. The ongoing changes that may occur in the
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DEBT! DEBT! DEBT! How did the US get in so much debt? That is one of the most common questions people ask. So why are we in so much debt? Well there are many reasons why‚ like‚ Deficit spending‚ spending too much money on things we could spend less on‚ and another reason is borrowing money with interest. So why is the US in so much debt? Well you’re about to find out. Well first of all‚ deficit spending is an issue that the US has. Deficit spending is when the government spends more money than
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Introduction Debt‚ what is it really? It can be defined as a relationship between a borrower and a lender. The borrower is called a debtor and the lender is called the creditor. This relationship can extend from a couple of individuals to mega corporations and as well as nations. It all started in the United States. In the beginning‚ banks are and other lenders are doing well. Interest rates were low and cheap loans were available and they lent money and keep on debt with no problem. They
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