Upon writing off remaining accounts receivable balance

Assignment Help Financial Management

Reference no: EM131956476

Upon writing off the remaining accounts receivable balance of $3,000 on a $9,000 bill on December 31, 2016, a clinic received $500 toward payment on the account on Feb 10, 2017. The letter attached to the check indicated that the estate of Patient X had been probated and final disbursements from the estate were being made to the known creditors. Your accountant has deposited the $500 check and has indicated that the check would be recorded to the non-operating income account. You are the Hospital’s auditor and have come across this transaction during a review of the March 2017 financial statements. Is this transaction correct? If not, describe the process of how you would have received this payment.

Reference no: EM131956476

Questions Cloud

Company pretax cost of debt and aftertax cost of debt : What is the company's pretax cost of debt? what is the aftertax cost of debt?

What is the present value of this annuity : At a nominal rate of annual interest of 12% convertible monthly what is the present value of this annuity?

What share price will you receive margin call : How much would you have to deposit into the margin account to open this position?At what share price will you receive a margin call?

Does depreciation shield result in cash or noncash saving : Does the depreciation shield result in cash or noncash savings for Bright Horizons? Explain.

Upon writing off remaining accounts receivable balance : Upon writing off the remaining accounts receivable balance of $3,000 on a $9,000 bill on December 31, 2016,

High liquidity ratio values or low liquidity ratio values : In general, which is better, high liquidity ratio values or low liquidity ratio values? What problem does it indicate the firm may be experiencing??

Calculate your monthly payments on mortgage : Calculate your monthly payments on this mortgage. Calculate the amount of interest and, separately, principal paid in the 150th payment.

What lump sum will peter receive on his retirement : Peter intends to retire in 25 years time. What lump sum will peter receive on his retirement?

Different ways financial manager can choose benchmark : Discuss the three different ways a financial manager can choose a benchmark. Provide an example for each.

User Account

All Pages