Anthony manages an extensive network of boutique hotels in the country. The entity has significant accounts receivable from three customers, namely: Kaila's Inn. Johnson House Jerome Hotel Other accounts receivable not individually significant 3,900,000 The entity has determined that the Johnson House receivable is impaired by 2,100,000 and the Jerome Hotel receivable is impaired by 1,900,000. The receivable from the Kaila's Inn is not impaired. The entity has also determined that a composite rate of 5% is appropriate to measure impairment on all other accounts receivable. What is the total impairment loss of accounts receivable? a. 5.000.000 b. 4.935.000 c. 4.395.000 4,000,000 7,800,000 6,000,000 d. 4.225.000

Anthony manages an extensive network of boutique hotels in the country. The entity has significant accounts receivable from three customers, namely: Kaila's Inn. Johnson House Jerome Hotel Other accounts receivable not individually significant 3,900,000 The entity has determined that the Johnson House receivable is impaired by 2,100,000 and the Jerome Hotel receivable is impaired by 1,900,000. The receivable from the Kaila's Inn is not impaired. The entity has also determined that a composite rate of 5% is appropriate to measure impairment on all other accounts receivable. What is the total impairment loss of accounts receivable? a. 5.000.000 b. 4.935.000 c. 4.395.000 4,000,000 7,800,000 6,000,000 d. 4.225.000

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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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Problem 8
Anthony manages an extensive network of boutique hotels in the country. The entity has
significant accounts receivable from three customers, namely:
Kaila's Inn.
Johnson House
Jerome Hotel
Other accounts receivable not individually significant
3,900,000
The entity has determined that the Johnson House receivable is impaired by 2,100,000 and the
Jerome Hotel receivable is impaired by 1,900,000. The receivable from the Kaila's Inn is not
impaired. The entity has also determined that a composite rate of 5% is appropriate to measure
impairment on all other accounts receivable.
What is the total impairment loss of accounts receivable?
a. 5,000,000
b. 4,935,000
c. 4,395,000
4,000,000
7,800,000
6,000,000
d. 4,225,000

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