D is wrong. Can someone please help? A counterbalancing error is best described by which of the following statements below:OA. An error that offsets itself in the same year by a reversing entry.O B. An error that corrects itself over a two year period without correcting entries.OC. Any error that eventually reverses.D. An error in one account (say $1,000) which is then offset by the same amount going the other direction in another account in the same year.

Answer: A counterbalancing error is one which when not detected within subsequent financial year is…

Answered: A counterbalancing error is best…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter6: Work Sheet And Adjusting Entries For A Service Business

Section6.3: Completing The Work Sheet And Finding Errors On A Work Sheet

Problem 5AYU

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Which of the following statements is true regarding aging accounts receivable? Multiple Choice O O O All of the statements are true. An aging schedule is used to improve the estimate used in the percent of revenue method of determining the uncollectible accounts expense. The aging of accounts receivable involves applying lower uncollectible percentage estimates to older receivables. The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected.
When the allowance method for recognizing uncollectible accounts receivable is used, the allowance account will have a positive balance at the end of the period if the write-offs during the period exceed the beginning balance the write-offs are equal to the balance of the account at the beginning of the period the write-offs during the period are less than the beginning balance the write-offs are equal to the difference between the beginning and the ending balance of the account.
c. Assume that the unadjusted trial balance on July 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?
The Allowance for Doubtful Accounts account will have a credit balance at the end of the period if the write-offs during the period are: none of the answers are correct. more than the beginning balance. less than the beginning balance. O equal to the beginning balance.
a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.
1. A dollar collected at the time of service has the same value as one collected two months after the service date. True or False? 2. The individual posting account balance write offs should be given complete authority to do so without superior approval. True or False? 3. To reconcile a payment batch, a separate calculator tape is run for all payments, withheld amounts, and adjustments. True or False?
Which of the following statements is true regarding aging accounts receivable? Multiple Choice The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. All of the statements are true. The aging of accounts receivable involves applying lower uncollectible percentage estimates to older receivables. An aging schedule is used to improve the estimate used in the percent of revenue method of determining the uncollectible accounts expense.
While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that Group of answer choices A. Accounts Receivable will be understated. B. the error will overstate the debits listed in the journal. C. the trial balance will not balance. D. the total credits in the trial balance will be larger than the total debits.
If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.
To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a ?
At the beginning of the current period, Whispering Winds Corp. had balances in Accounts Receivable of $200,600 and in Allowance for Doubtful Accounts of $9,630. During the period, it had net credit sales of $770,000 and collections of $746,470. It wrote off as uncollectible accounts receivable of $7,481. Uncollectible accounts are estimated to total $22,900 at the end of the period. (Omit recording cost of goods sold.) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period (c) Record bad debt expense for the period. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Liabili ties Assets Stockholders' Equity Allow. Retained Earnings For Doubtf Comm Accts. Cash ul on Rev. Exp. Rec. Accts Stock…
Select the best answer for the question. 10. A trial balance indicates that the debit total exceeds the credit total by $63. Which of the following errors is the most probable source of the discrepancy? A. An asset with a balance of $63 was mistakenly entered in the ledger as a credit for that amount instead of a debit B. An asset with a balance of $670 was mistakenly entered in the ledger as a $607 debit OC. A liability with a balance of $63 was mistakenly entered in the ledger as a debit for that amount, instead of a credit OD. A liability with a balance of $970 was mistakenly entered in the ledger as a $907 credit O Mark for review (Will be highlighted on the review page) Previous Question Next Question >>

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