Question 2 of 34 While examining the accounts of Grandma Company on December 31, 2015, the following errors were uncovered: ● Dividends of PI00,000 had been declared on December 15, 2015 but was not recorded in the books. ● Improvements in buildings and equipment for P480,000 had been debited to expense at the end of April in 2014. Improvements are estimated to h- estimated life of 8 years. The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2014 and 2015, respectively. supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2014 and 2015, respectively. What is the net effect of the above errors in the 2014 net income? - ● Select the correct response: P423,500 under P435,500 under P463,500 under

Question 2 of 34 While examining the accounts of Grandma Company on December 31, 2015, the following errors were uncovered: ● Dividends of PI00,000 had been declared on December 15, 2015 but was not recorded in the books. ● Improvements in buildings and equipment for P480,000 had been debited to expense at the end of April in 2014. Improvements are estimated to h- estimated life of 8 years. The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2014 and 2015, respectively. supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2014 and 2015, respectively. What is the net effect of the above errors in the 2014 net income? - ● Select the correct response: P423,500 under P435,500 under P463,500 under

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Description: Question 2 of 34While examining the accounts of Grandma Company on December 31, 2015, the following errors were uncovered:Dividends of PI00,000 had been declared on December 15, 2015 but was not recorded in the books.Improvements in buildings and eq

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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Current Attempt in Progress Sandhill Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Accounts written off in the year Accounts receivable balance on December 31 (after the accounting writeoff above) (a) Credit losses $ $3,264,000 Assume that Sandhill Company estimates its expected credit losses based on an analysis of the length of time its receivables have been outstanding. After completing this analysis and applying the expected rates of credit losses, the company estimated total expected credit losses of $55,000. Credit losses 68,000 i. What amount of credit losses will the company record if it has a credit balance (before adjustment) of $6,500 in its Allowance for Expected Credit Losses on December 31? $ 546,000 eTextbook and Media -15 E ii. What amount of credit losses will it record if there is a debit balance (before adjustment) of $6,500 in its Allowance for Expected Credit Losses on…