Homework Help is Here – Start Your Trial Now!
Business
Accounting
In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Balance Current Past Due Customer 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 3. This Boy Company 350,000 92,000 258,000 4. Girl Corporation 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 256,000 80,000 176,000 240,000 240,000 9. Yesterday Corporation Totals P2,020,000 P936.000 P1,084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.

In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Balance Current Past Due Customer 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 3. This Boy Company 350,000 92,000 258,000 4. Girl Corporation 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 256,000 80,000 176,000 240,000 240,000 9. Yesterday Corporation Totals P2,020,000 P936.000 P1,084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

REQUIRED:
a. Adjusting entries as of December 31, 2005.
b. Adjusted balance of Accounts Receivable - Trade as of December 31, 2005.

In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Customer Balance Current Past Due 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 350,000 92,000 258,000 3. This Boy Company Girl Corporation 4. 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 80,000 176,000 256,000 240,000 240,000 9. Yesterday Corporation Totals P2.020,000 P936.000 P1.084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.
Transcribed Image Text:In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Customer Balance Current Past Due 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 350,000 92,000 258,000 3. This Boy Company Girl Corporation 4. 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 80,000 176,000 256,000 240,000 240,000 9. Yesterday Corporation Totals P2.020,000 P936.000 P1.084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.
5. Ticket To Ride Transport Corp. Collected in full on January 31, 2006. 6. Let It Be Corporation Paid in full on December 30, 2005 but not recorded. Collections were deposited on January 2, 2006. 7. Hey Jude Received account confirmation from customer for P44,000. Investigation revealed an erroneous credit for P40,000. (See Get Back Company) Neglected to post P40,000 credit to customer's account. 8. Get Back Company 9. Yesterday Corporation Customer wants to know reason for receipt of P160,000 credit memo as their accounts payable balance was P400,000. REQUIRED: a. Adjusting entries as of December 31, 2005. b. Adjusted balance of Accounts Receivable - Trade as of December 31, 2005.
Transcribed Image Text:5. Ticket To Ride Transport Corp. Collected in full on January 31, 2006. 6. Let It Be Corporation Paid in full on December 30, 2005 but not recorded. Collections were deposited on January 2, 2006. 7. Hey Jude Received account confirmation from customer for P44,000. Investigation revealed an erroneous credit for P40,000. (See Get Back Company) Neglected to post P40,000 credit to customer's account. 8. Get Back Company 9. Yesterday Corporation Customer wants to know reason for receipt of P160,000 credit memo as their accounts payable balance was P400,000. REQUIRED: a. Adjusting entries as of December 31, 2005. b. Adjusted balance of Accounts Receivable - Trade as of December 31, 2005.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS