Acc101 – Quiz on Receivables Show your supporting computations in good form. Encircle your final answer. Problem 1 For the year ended December 31‚ 2009‚ Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts‚ 1/1/09 P51‚000 Provision for uncollectible accounts during 2009 (2% on credit sales of P2‚000‚000) 40‚000 Uncollectible accounts written off‚ 11/30/09
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revenue in cash. The classes of transactions in this cycle for a merchandising company are sales‚ sales adjustments‚ and cash receipts. The primary accounts affected by these transactions are sales‚ accounts receivable‚ cost of sales‚ inventory‚ cash‚ sales discounts‚ sales returns and allowances‚ bad debts expense‚ and allowance for uncollectable accounts Specific audit objectives for the revenue cycle are derived from the five categories of management ’s financial statement assertions.
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returned for credit. 5. b. Unrecorded sales discounts. c. Lapping of year end accounts receivable. d. Inflated sales for the year. 6. ANSWER: D 7. 2. Which of the following forms of evidence represents the most competent evidence that a receivable actually exists? 8. a. A positive confirmation. b. A sales invoice. c. A receiving report. d. A bill of lading. 9. ANSWER: A 10. 3. During the process of confirming receivables as of December 31‚ 2002‚ a positive confirmation was returned indicating the
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documents and controls. 4‚ 5‚ 6‚ 7‚ 8 54‚ 55‚ 61‚ 63‚ 64‚ 66 3. Give examples of tests of controls over customer credit approval‚ delivery‚ and accounts receivable accounting. 9‚ 10‚ 11‚ 12‚ 13‚ 14 56‚ 65 4. Give examples of substantive procedures in the revenue and collection cycle and relate them to assertions about account balances at the end of the period. 15‚ 16‚ 17‚ 18‚ 19‚ 20‚ 21‚ 22 57‚ 58‚ 60‚ 61‚ 67‚ 68‚ 69‚ 70‚ 71‚ 72‚ 73 5. Describe some common errors and
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reviewed certain transactions that affected accounts receivable and the allowance for doubtful accounts. The controller first examined the December 31‚ 2005‚ balance sheet (Exhibit 1). A subsequent review of the year’s transactions applicable to accounts receivable revealed the items listed below: 1. Sales on account during 2006 amounted to $9‚965‚575. 2. Payment received on accounts receivable during 2006 totaled $9‚685‚420. 3. During the year‚ accounts receivable totaling $26‚854 were deemed uncollectible
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cash. b. The classes of transactions in this cycle for a merchandising company are sales‚ sales adjustments‚ and cash receipts. The primary accounts affected by these transactions are sales‚ accounts receivable‚ cost of sales‚ inventory‚ cash‚ sales discounts‚ sales returns and allowances‚ bad debts expense‚ and allowance for uncollectible accounts 14-2. a. Specific audit objectives for the revenue cycle are derived from the five categories of management’s financial statement assertions
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Accounts Receivable Cycle Riordan Manufacturing‚ an industry leader in the field of plastic injection molding‚ has facilities in California‚ Georgia‚ Michigan and China. The accounting functions are carried out in each individual location‚ and consolidated for processing in the corporate offices in California. The Georgia and Michigan locations‚ being newly acquired‚ are using systems that are not completely compatible with the corporate offices. This is causing problems on many levels and within
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for accounts receivable and allowance for doubtful accounts: Accounts Receivable -- $330‚000; Allowance for Doubtful Accounts -- $11‚000. During 2014‚ Bob had $3‚350‚000 of credit sales‚ collected $3‚290‚000 of accounts receivable‚ and wrote off $14‚000 of accounts receivable as uncollectible. At year end‚ Bob performs an aging of its accounts receivable and estimates that $8‚000 will be uncollectible. What will be the amount of the AJE at year end to adjust the allowance for doubtful accounts? a
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This paper will focus on those areas of cash and cash equivalents‚ accounts receivable‚ and inventories. A list of components that make up the cash and cash equivalents section will be identified. The first part of the paper will introduce the Kellogg Company and provide some history of the company. The main focal point is the analysis of the annual disclosure notes as it relates to cash and cash equivalents‚ accounts receivable‚ and the company’s inventories. Kellogg’s stemmed out from the invention
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success also derived from strategy of Oleg Pinchuk‚ a former major Ukrainian beer producer. He aggressively had policy on giving credits to distributors. On a small budget‚ he had organized five distributorships‚ taken the company to 211 customer account (from 0)‚ and set up warehousing arrangement. These policies were a key of achievement. Oleg Pinchuk’s strategies focused on getting people into distribution pipeline to serve customer needs whenever they want it. Although there was nonexistent for
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