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1. Determine any irregularity in the receivables of the entity 2. Explain/Compute how the irregularity was committed.

1. Determine any irregularity in the receivables of the entity 2. Explain/Compute how the irregularity was committed.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all the following and give the complete solutions on how you come up with that .

Question No. 1 The STUVWXYZ Corp. suspects anomalies being committed in its receivables. You were commissioned to audit the entity and to report to the management any irregularity. Some information on their financial records as of December 31, 2022: Accounts Receivable, January 1 P1,920,000 6,240,000 Collections of account receivable per cash ledger Bad debts 200,000 Inventory, January 1 2,880,000 Inventory, December 31 2,640,000 Accounts payable, January 1 1,000,000 Accounts payable, December 31 1,500,000 Cash sales 1,200,000 Purchases 4,800,000 Gross profit on sales 2,160,000 Accounts receivable, December 31 880,000 Required: 1. Determine any irregularity in the receivables of the entity 2. Explain/Compute how the irregularity was committed.
Transcribed Image Text:Question No. 1 The STUVWXYZ Corp. suspects anomalies being committed in its receivables. You were commissioned to audit the entity and to report to the management any irregularity. Some information on their financial records as of December 31, 2022: Accounts Receivable, January 1 P1,920,000 6,240,000 Collections of account receivable per cash ledger Bad debts 200,000 Inventory, January 1 2,880,000 Inventory, December 31 2,640,000 Accounts payable, January 1 1,000,000 Accounts payable, December 31 1,500,000 Cash sales 1,200,000 Purchases 4,800,000 Gross profit on sales 2,160,000 Accounts receivable, December 31 880,000 Required: 1. Determine any irregularity in the receivables of the entity 2. Explain/Compute how the irregularity was committed.
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