5. The trial balance extracted from the records of Naa Adoley Enterprise was unable to agree, with the credit side exceeding the debit side by $750.00. On thorough examination, the following errors were detected: (ii) (iii) (iv) (vi) (vii) The purchases day book had been undercast by $6,250 Goods purchased from Akorkor amounting to $138,750 had been posted to the credit side of her account as $118500 A cheque of $120,000 received from Akwele, a debtor, and paid into the bank was dishonoured but no entries were made in the books in this regard. Sales return of $6,000 enteres in the sales returns day book had been debited to Adotey who returned the goods. One of the motor vans was sold for $37,500 and entered in the sales day book. An amount of $33,750 owing to Amorkor had been omitted from the list of creditors. Discounts allowed of $10,500 to Adotei had been entered in his account but not entered in the general ledger. Required (a) Write up the jounal entries to correct the errors (b) Prepare the suspense account.

5. The trial balance extracted from the records of Naa Adoley Enterprise was unable to agree, with the credit side exceeding the debit side by $750.00. On thorough examination, the following errors were detected: (ii) (iii) (iv) (vi) (vii) The purchases day book had been undercast by $6,250 Goods purchased from Akorkor amounting to $138,750 had been posted to the credit side of her account as $118500 A cheque of $120,000 received from Akwele, a debtor, and paid into the bank was dishonoured but no entries were made in the books in this regard. Sales return of $6,000 enteres in the sales returns day book had been debited to Adotey who returned the goods. One of the motor vans was sold for $37,500 and entered in the sales day book. An amount of $33,750 owing to Amorkor had been omitted from the list of creditors. Discounts allowed of $10,500 to Adotei had been entered in his account but not entered in the general ledger. Required (a) Write up the jounal entries to correct the errors (b) Prepare the suspense account.

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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Name the error which was made under the following circumstances: The business returned goods of N$1000 to the supplier and the bookkeeper did not at all record the transaction in the books of account. a. Compensating error b. Error of ommisionn O c. Error of omission O d. Error of oommission
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Required: Prepare the journal entries for these transactions, including the write - off of the uncollectible account and the adjusting entry for estimated bad debts. Do not record cost of goods sold. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.
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The total of a list of balances in Patricia Co’s receivables ledger was $643,700 on 30 September 20X9. This did not agree with the balance on Patricia Co’s receivables ledger control account. The following errors were discovered: (i) A credit balance on an individual customer’s account of $400 was incorrectly extracted as a debit balance (ii) An invoice for $3,553 was posted to the customer account as £3,535 (iii) The total of the sales returns day book was overcast by $600 What amount should be shown in Patricia Co’s statement of financial position for accounts receivable at 30 September 20X9? A. $642,918 B. $642,882 C. $644,482 D. $643,418
Bidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a: Select one: O a. None of the answers are correct O b. debit to Bad Debt Expense for RO 5,300. O c credit to Allowance for Doubtful Accounts for RO 6,500. Od. debit to Allowance for Doubtful Accounts for RO 5,300. O e. credit to Bad Debt Expense for RO 7,700.
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TRUE or FALSE 3. All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. 4. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. 5. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinion, on the client's financial statements. 6. Inspection of notes receivable on hand should be performed concurrently with the count of cash and securities to prevent the concealment of a shortage by substitution of cash for misappropriated negotiable instruments, or vice versa. 7. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 8. The auditor needs the client's permission to send out "confirmations" 9. A customer's response…
! Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 View transaction list
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