Assume the following errors made by the Sri Lanka Company on 12/31/24: . Collected $4 in advance for services to be performed next month; debited Depreciation Expense and credited Sales Revenue Borrowed $13 on a noncurrent Note Payable and debited Sales Discount and credited Interest Expense Recorded the $11 payment of a dividend previously declared by debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts 12/31/24 Working Capital is in error by: Select one: O a $6 Ob. $11 Oc. $13 Od $28 Oe. $24

Assume the following errors made by the Sri Lanka Company on 12/31/24: . Collected $4 in advance for services to be performed next month; debited Depreciation Expense and credited Sales Revenue Borrowed $13 on a noncurrent Note Payable and debited Sales Discount and credited Interest Expense Recorded the $11 payment of a dividend previously declared by debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts 12/31/24 Working Capital is in error by: Select one: O a $6 Ob. $11 Oc. $13 Od $28 Oe. $24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

31
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
The accounts of Long Company provided the following 20X5 information at 31 December 20X5 (end of the annual period): Accounts receivable balance, 1 January 20X5 $51,000 Allowance for doubtful accounts balance, 1 January 20X5 3,000 Uncollectible account to be written off during 20X5 (ex-customer Slo) 1,000 Cash collected on accounts receivable during 20X5 170,000 Estimates for bad debt losses: Based on ending balance of accounts receivable, 8%. Based on aging schedule (excludes Slo’s account): Age Accounts Receivable Probability of Noncollection Less than 30 days $28,000 2% 31–90 days 7,000 10 91–120 days 3,000 30 More than 120 days 2,000 60 Required: Give the entry to write off customer Slo’s long-overdue account. Give all entries related to accounts receivable and the allowance account for the following two cases: Case A—Bad debt expense is based on the ending balance of accounts receivable Case B—Bad debt expense is based on aging Show how the results of applying each case above…
View Policies Current Attempt in Progress Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31 and sales on credit during the year of $ 24.5 million. There is also a credit balance of $ 11500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $388200. O $ 399700. O $ 376700. O $1470000. Save for Later Attempts: 0 of 1 used Submit Answer
Haresh
32. Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton CompanyAdjusted Trial BalanceDecember 31 AccountNo. DebitBalances CreditBalances Cash 11 6,912 Accounts Receivable 12 2,948 Prepaid Expenses 13 689 Equipment 18 14,440 Accumulated Depreciation 19 1,203 Accounts Payable 21 1,683 Notes Payable 22 5,756 Bob Steely, Capital 31 14,457 Bob Steely, Drawing 32 732 Fees Earned 41 6,268 Wages Expense 51 2,243 Rent Expense 52 796 Utilities Expense 53 383 Depreciation Expense 54 161 Miscellaneous Expense 59 63 Totals 29,367 29,367 Use the adjusted trial balance for Stockton Company. Determine the current assets. a.$29,367 b.$10,549 c.$23,786 d.$9,860
Give answer In text not image
Keel Company's December 31 balances from the prior year related to accounts receivable follow. Accounts receivable (Dr.) Allowance for doubtful accounts (Cr.) $500,000 10,000 During the current year, $15,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for the current year are $2,000,000, of which $400,000 are cash sales. A total of $1,500,000 cash was collected during the current year from sales that were originally made on account. Required a. Assuming that Keel applies the allowance method to estimate net accounts receivable and uses 10% of accounts receivable as its estimate of expected credit losses, prepare the disclosure on gross and net accounts receivable on the balance sheet at December 31 of the current year. • Note: Do not use negative signs in your answers. Balance Sheet, December 31 Accounts receivable Less: Allowance for doubtful accounts Accounts receivable, net 0
If a company faded to recognize the discount on non-interest-bearing notes receivable (unearned interest income credit). meaning the nite was recorded at face how would it affect the financial statements? A. the statement of changes in equity will not affect by this error? b. at the end of the year of issuance, the statement will be understand while the balance sheet will be overstated c. the income statement won't be enormous while the balance will be overstated d. the income statement will be understated while the balance sheet will not be enoneous.
please avoid solutions in image format thank you
18 A company understated its income and accounts receivable last year by $5,000 Which entry should be made in the current year to correct this material error? O Debit Sales for $5,000; Credit Retained Earnings for $5,000 O Debit Accounts Receivable for $5,000; Credit Retained Earnings for $5,000 Debit Retained Earnings for $5,000; Credit Accounts Receivable for $5,000 Debit Retained Earnings for $5,000; Debit Sales for $5,000
eceivables in the Balance Sheet The following partial balance sheet contains errors. ZABEL COMPANYBalance SheetDecember 31, 20Y4 Assets Current assets: Cash $76,000 Notes receivable $117,500 Less interest receivable 9,300 108,200 Account receivable $477,000 Plus allowance for doubtful accounts 21,750 498,750 Prepare a corrected partial balance sheet for Zabel Company.