please answer all the following and give the complete solutions on how you come up with that . Question No. 1The STUVWXYZ Corp. suspects anomalies being committed in its receivables. You were commissioned toaudit the entity and to report to the management any irregularity. Some information on their financialrecords as of December 31, 2022:Accounts Receivable, January 1P1,920,0006,240,000Collections of account receivable per cash ledgerBad debts200,000Inventory, January 12,880,000Inventory, December 312,640,000Accounts payable, January 11,000,000Accounts payable, December 311,500,000Cash sales1,200,000Purchases4,800,000Gross profit on sales2,160,000Accounts receivable, December 31880,000Required:1. Determine any irregularity in the receivables of the entity2. Explain/Compute how the irregularity was committed.

Receivables are those accounts which the company have at the end of the year which will be received…

Answered: 1. Determine any irregularity in the…

Business

Accounting

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

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 21E

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