returns and allowances‚ $30‚000 Gross profit‚ $490‚000 Accounts receivable‚ $110‚000 Sales discounts‚ $14‚000 Allowance for doubtful accounts credit balance‚ $1‚200 How much is bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible? A. $5‚500 B. $6‚700 C. $4‚240 D. $4‚300 Answer: Bad debt expense ($4‚300) = 5% of accounts of accounts receivable (5% $110‚000) - allowance for doubtful accounts credit balance ($1‚200). 3) Which of the following journal
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Accounts Receivable Turnover = Net Sales/Average Net Account Receivables Accounts receivable turnover ratio measures the effectiveness of a company in extending credit and collecting debts. It is an activity ratio that measures how efficiently a firm uses its assets. Year ABC DEF GHI Industry Average 2012 31‚ 053/988 = 31.43 16‚842/1‚282.5 = 13.13 5‚160/618 = 8.35 17.64 2013 32‚722/1‚042 = 31.4 18‚657/937 = 19.91 5‚858/494 = 11.86 21.06 In this table you see the accounts receivable turnovers from
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000 21.1.2011 Goods withdrawn for personal use Rs. 5‚000 25.1.2011 Paid an advance to suppliers of goods Rs. 1‚00‚000 26.1.2011 Received an advance from customers Rs. 3‚00‚000 31.1.2011 Paid interest on loan Rs. 5‚000 31.1.2011 Paid instalment of loan Rs. 25‚000 31.1.2011 Interest allowed by bank Rs. 8‚000 Analysis of transaction –with accounts involved-nature of account-affects and debit/credit Solution: Date Accounts Involved Nature of Account Affects Debit/credit 18.1.2011 Cash a/c Sanjay
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1. What was the Kanthal president‚ Ridderstråle‚ attempting to accomplish with the Account Management System? Are these sensible goals? Ridderstrale had the objective to find hidden profits and losses contained in their current accounting system. The old system did not fully disclose how their costs were applied to the sales accounts. The goals are very sensible as they will allow them to move forward with the proper information. 2. Why did Ridderstråle feel that the previous cost system
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pounds sterling (L). a. What is an account receivable? What other names does this asset go by? b. How do accounts receivable differ from notes receivable? c. What is a contra account? What two contra accounts are associated with Pearson’s trade receivables (see Note 22)? What types of activities are captured in each of these contra accounts? Describe factors that managers might consider when deciding how to estimate the balance in each of these contra accounts. d. Two commonly used approaches for
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one period of time. | | | |b. estimates should not be made if a transaction affects more than| | | |one time period. | | | |c. adjustments to the enterprise ’s accounts can only be made in | | | |the time period when the business terminates its operations. | | | |d. the economic life of a business can be divided into artificial | | | |time periods.
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Practices that Lead to Superior Performance‚ ASQC Quality Press‚ Milwaukee‚ WI. Camp‚ R.C. (1995)‚ Business Process Benchmarking: Finding and Implementing Best Practices‚ ASQC Quality Press‚ Milwaukee‚ WI. Cassell‚ C.‚ Nadin‚ S. and Gray‚ M.O. (2001)‚ “The use and effectiveness of benchmarking in SMEs”‚ Benchmarking: An International Journal‚ Vol Chia‚ A.‚ Goh‚ M. and Hum‚ S.H. (2009)‚ “Performance measurement in supply chain entities: balanced scorecard perspective”‚ Benchmarking: An International Journal
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interpreting the contents of the British airways accounts I will also be writing a statement about the business and its progress‚ and describe what profit and loss accounts are. PROFIT AND LOSS ACCOUNT By law business are required to provide annual financial statements‚ which will appear in their company report‚ there are two main types of financial statements‚ one is balance sheet and the other is a profit and loss account. A profit and loss account is a record which can be updated regularly and
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Q. How Will You treat ‘ packing expenses on sales’ in final accounts? Ans. It is an indirect expense‚ therefore‚ it should be shown in the Profit & Loss Account. Adjustments at a Glance Sl No. Adjustments Adjustment Entries Treatment in Final Accounts 1. Closing Stock Closing Stock A/c Dr. To Trading A/c a. Credit side of Trading A/c. b. Show on the assets side of B/S 2. Outstanding or unpaid expenses Expenses A/c Dr. To Outstanding exp. a. Add to the
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REFLECTIVE ACCOUNTS The word reflective or reflection is derived from the word reflect. The Oxford dictionary meaning of reflect is “to think carefully and deeply about something”. The word “reflective” is an adjective used to describe the kind of report or writing you are required to submit for your Diploma. Therefore a reflective account can be understood as a real or true story of how you have carried out an activity at work or an action you took in the past and why you took the action.
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