Reference no: EM13852430
Problem:
Presented below is an aging schedule for Bosworth Company.
Customer
|
Total
|
Not Yet Due
|
Number of Days Past Due
1-30 31-60 61-90
|
Over 90
|
Aneesh
|
$ 30,000
|
|
$ 12,000
|
$18,000
|
|
|
Bird
|
36,400
|
$ 36,400
|
|
|
|
|
Cope
|
59,900
|
7,000
|
6,800
|
|
$46,100
|
|
DeSpears
|
47,000
|
|
|
|
|
$47,000
|
Others
|
146,200
|
92,800
|
33,100
|
20,300
|
|
|
|
$319,500
|
$136,200
|
$51,900
|
$38,300
|
546,100
|
547,000
|
Estimated percentage uncollectible
|
|
5%
|
7%
|
11%
|
25%
|
59%
|
Total estimated bad debts
|
$ 53,911
|
$ 6,810
|
$3,633
|
$4,213
|
$ 11,525
|
$27,730
|
1. Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Post the adjusting entry for bad debts at December 31, 2013.
2. Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous pan.)
3. At December 31. 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,800.Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
i. March 1, a $840 customer balance originating in 2013 is judged uncollectible.
ii. May 1, a check for $840 is received from the customer whose account was written off as uncollectible on March 1.
4. Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of 51,700 and the aging schedule indicates that total estimated bad debts will be $43,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
What would you set audit risk for the pti audit engagement
: What would you set audit risk for the PTI audit engagement - Indicate four business risks associated with the factors that Sharon has identified and link each business risk to a specific risk
|
Describe issues that business should consider
: A business is considering dropping a segment of its business. Describe the issues that the business should consider in making this decision.
|
Can the nominal interest rate ever be negative
: Can the nominal interest rate ever be negative? Can the real interest rate ever be negative? Please thoroughly explain. What is the relationship between a bond's price and its yield to maturity?
|
Prepare a multistep income statement
: Woozie Floozy Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Woozie Floozy sold the wholesale operations to Flippy-Floppy Company. During 2014, there were 200,000 shares..
|
Journalize the adjusting entry for bad debts at december
: Journalize the adjusting entry for bad debts at December 31, 2013 - Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of 51,700 and the aging schedu..
|
Cost system with overhead applied
: Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2013 follow:
|
What is the minimum number of years for an investment
: What is the minimum number of years in which an investment costing $210,000 must return $65,000 per year at a discount rate of 13% in order to be an acceptable investment?
|
Degine womens physical and cultural characteristics
: Women are not forced to marry, yet many women feel that their subordinate status is most irrevocably defined within marriage.
|
What amount will perrys pretax earnings
: The normal cash price for this type of equipment is $140,000 while the cost to Perry was $109,000. For the year ended December 31, 2013, by what amount will Perrys pretax earnings increase from this lease?
|