Want Answer Financial AccountingQuestion: A company's trial balance shows total debits of $50,000 and total credits of$48,000. In this scenario, what does the trial balance indicate, and how should the companyproceed?A) The trial balance is balanced; no further action is required.B) There is a $2,000 credit balance error, and the company should locate the missingdebits.C) There is a $2,000 debit balance error, and the company should locate the missingcredits.D) It is acceptable for debits and credits to differ, so no action is needed.

Explanation of Trial Balance:A Trial Balance is a report that lists the balances of all general…

Answered: Financial Accounting Question: A…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 5PA: The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and...

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The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was understated by 6,000. b. A cash receipt of 5,600 was posted as a debit to Cash of 6,500. c. A debit of 11,000 to Accounts Receivable was not posted. d. A return of 150 of defective supplies was erroneously posted as a 1,500 credit to Supplies. e. An insurance policy acquired at a cost of 1,200 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was understated by 20,000. g. A credit of 4,800 in Accounts Payable was overlooked when determining the balance of the account. h. A debit of 7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital. i. The balance of 58,100 in Rent Expense was entered as 51,800 in the trial balance. j. Gas, Electricity, and Water Expense, with a balance of 24,150, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.
On December 1, Anson's Drug Store concluded that a customer's $325 account receivable was uncollected and that the account should be written off. What effect will this write-off have on the company's net income and balance sheet totals assuming the direct write-off method is used to account for bad debts? a. decrease in net income; decrease in total assets b. no effect on net income; no effect on total assets c. increase in net income; no effect on total assets d. no effect on net income; decrease in total assets
On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the direct write-off method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? Mutiple Choice Decrease in net income; no effect on total assets. No effect on net income; no effect on total assets. Decrease in net income; decrease in total assets. Increase in net income; no effect on total assets. No effect on net income; decrease in total assets
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On reviewing the financial statements, the company's accountant discovers that a payment of £21,000 made to a supplier has been incorrectly recorded in the cash book and in other internal accounting records as £31,000. What will be the effect on the income statement (profit and loss account) and statement of financial position (balance sheet) when this error is rectified? a) Profit before tax will remain unchanged, asset of cash will decrease by £10,000 and trade payables (creditors) will decrease by £10,000 b) Profit before tax will decrease by £21,000 and trade payables (creditors) will increase by £21,000 c) Profit before tax will remain unchanged, asset of cash will increase by £10,000 and trade payables (creditors) will increase by £10,000 d) Profit before tax will increase by £31,000 and trade payables (creditors) will increase by £31,000
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.
Questions: a. The net realizable value of accounts receivable as of December 31, 2023 is? b. Your proposed adjusting journal entry to correct the balance of allowance for bad debts would include a net debit or credit of? (just indicate the amount)
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 42,000 5% Accounts receivable Percent uncollectible Req A Total $ 600,000 Req B and C Complete this question by entering your answers in the tabs below. Accounts Receivable Exercise 7-14 (Algo) Aging of receivables method LO P3 a. Complete the table below to calculate the estimated balance of 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 $4,200 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 $700 debit. X X X X Percent Uncollectible (%) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles Ø $ 402,000 1% Complete the table below to…
27.A company writes off as uncollectible an account receivable from a bankrupt customer. The company has an adequate amount in its Allowance for Uncollectible Accounts. What would be the effect of this transaction in the company's financial statements? a. Operating expenses for the period will increase. b. Total current assets will decrease. c. Net profit for the period will not be affected. d. Net profit for the period will decrease.
. On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; Allowance for Doubtful Accounts, credit balance of $951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible? A. $ 951.B. $3,992.C. $4,884.D. $5,835.E. $6,786.
On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? Multiple Choice No effect on net income; no effect on total assets. Decrease in net income; no effect on total assets. Decrease in net income; decrease in total assets. No effect on net income; decrease in total assets.
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