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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hospital is currently making enough to cover the debts‚ which equals to no profit. The hospital’s Revenue needs to increase to continue avoiding the debts of the hospital from increasing. I feel that providing quality service will in turn increase the amount of patients seen ultimately increasing revenue. A major push to collect on bad debts will also increase the hospitals revenue. Over the course of five years‚ reducing the amount of bad debt and increasing the quality of care received by patients
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E 6-5 (Computation of Present Value) Present value of an ordinary annuity = R (PVF -) a) Present value of an ordinary annuity = $30‚000 (PVF -) = $30‚000 (4.96764) = $149‚029.20 b) Present value of an ordinary annuity = $30‚000 (PVF -) = $30‚000 (8.31256) = $249
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2 What are the essential features of the allowance method of accounting for bad debts? There are three essential features of the allowance method of accounting for bad debt. First‚ companies estimate uncollectible accounts receivables and match them against revenues in the same accounting period in which the revenues are recorded. Second‚ companies record estimated uncollectibles as an increase (a debit) to bad debts expense and an increase (a credit) to allowance for doubtful accounts through
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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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“FleetCor” or the “Company”) an investment into FleetCor for the total amount of $44.9 million in return for a post transaction ownership of 54.2% in the “Company” and coming down to 46% ownership in the company after newly created stock options for management equivalent to 15% ownership in the company has been completely executed and fully diluted. This investment is in the form of convertible preferred stock with an 8% accrued interest‚ compounding annually. As the transaction come through‚ Summit’s
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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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E6-5 (Computation of Present Value) Using the appropriate interest table‚ compute the present values of the periodic amounts‚ shown on page 344‚ due at the end of the designated periods. (a) $50‚000 receivable at the end of each period for 8 periods compounded at 12%. 50‚000* 4.9676= $248‚380 (b) $50‚000 payments to be made at the end of each period for 16 periods at 9%. 50‚000* 8.3126= $415‚630 (c) $50‚000 payable at the end of the seventh‚ eighth‚ ninth‚ and tenth periods at 12%. 50‚000*
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identification of problem faced by FCB is needed and solution should be implemented which can give immediate effect in order to avoid devastating FCB reputation as well as allowing FCB remained as the nation’s leading air cargo carrier. Issue Uncollectible debts‚ improper sales transaction‚ incorrectly recorded debtors’ account and abnormal transaction had caused Air Flat Cargo involved the possibility of fraud in a financial audit engagement. Problem Identified in Flat Cargo Berhad In 2006‚ during a routine
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Question 3: Paragraph 81 states that if the amount of consideration to which an entity will be entitled is variable‚ the cumulative amount of revenue the entity recognizes to date should not exceed the amount to which the entity is reasonably assured to be entitled. An entity is reasonably assured to be entitled to the amount allocated to satisfied performance obligations only if the entity has experience with similar performance obligations and that experience is predictive of the amount of consideration
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