Problem NO: 5

Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2014.\n1. An aging schedule of the

Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2014.

\r\n

1. An aging schedule of the accounts receivable as of December 31, 2014, is as follows.

\r\n

% to Be Applied after

\r\n

Age Net Debit Balance Correction Is Made

\r\n

Under 60 days $172,342 1%

\r\n

60–90 days 136,490 3%

\r\n

91–120 days 39,924* 6%

\r\n

Over 120 days 23,644 $3,700 defi nitely uncollectible;

\r\n

$372,400 estimated remainder uncollectible is 25%

\r\n

*The $3,240 write-off of receivables is related to the 91-to-120 day category.

\r\n

2. The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2014.

\r\n

3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December

\r\n

31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $3,240 on November 3, 2014, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.

\r\n

4. Allowance for Doubtful Accounts is as follows for 2014.

\r\n

\"\"

\r\n

 

\r\n

5. A credit balance exists in Accounts Receivable (60–90 days) of $4,840, which represents an advance on a sales contract.

\r\n

Instructions

\r\n

Assuming that the books have not been closed for 2014, make the necessary correcting entries

0  reviews

Suggestions based on the Question and Answer that you are currently viewing

Snider Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first

Snider Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first quarter of the 2014–2015 fiscal year. Snider’s financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year. Sales revenue $60,000,000 Cost of goods sold 36,000,000 Variable selling expenses 1,000,000 Fixed selling expenses 3,000,000 Included in the fixed selling expenses was the single lump-sum payment of $2,000,000 for television advertisements for the entire year. Instructions (a) Snider Corporation must issue its quarterly financial statements in accordance with IFRS regarding interim financial reporting. (1) Explain whether Snider should report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period. (2) State how the sales revenue, cost of goods sold, and fixed selling expenses would be reflected in Snider Corporation’s quarterly report prepared for the first quarter of the 2014–2015 fiscal year. Briefly justify your presentation. (b) What financial information, as a minimum, must Snider Corporation disclose to its shareholders in its quarterly reports?

(0)

The benefits of buying with AnswerDone:

Guaranteed quality through customer reviews

Access to High-Quality Documents

Our platform features a wide range of meticulously curated documents, from solved assignments and research papers to detailed study guides. Each document is reviewed to ensure it meets our high standards, giving you access to reliable and high-quality resources.

Quick and easy check-out

Easy and Secure Transactions

We prioritize your security. Our platform uses advanced encryption technology to protect your personal and financial information. Buying with AnswerDone means you can make transactions with confidence, knowing that your data is secure

Focus on what matters

Instant Access

Once you make a purchase, you’ll have immediate access to your documents. No waiting periods or delays—just instant delivery of the resources you need to succeed.

$1.49  0x  sold
    (0)
  Add to cart