What is the net effect of the above errors on 2019 & 2020 net income?
Q: Your audit of Hemsworth Company’s accounts receivable and its related allowance for doubtful…
A: Introduction A provision for doubtful accounts is a response asset since it affects the value of an…
Q: At the end of its first year of operations, December 31, 2020, ASHOPEE Company had accounts…
A: Allowance for uncollectible accounts is considered a contra asset account. It is prepared against…
Q: Nash, Inc. had net sales in 2025 of $1,506,600. At December 31, 2025, before adjusting entries, the…
A: Allowance for Doubtful Accounts - Allowance for doubtful Accounts is a contra account prepared by…
Q: 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and…
A: Formula: Net Realizable value = Accounts receivable balance - Allowance for doubtful accounts
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Allowance for doubtful accounts is the provision made by the company for the accounts which the…
Q: Geisel, Inc. reported net sales revenue of $522,000 in 2018 and $628,000 in 2019. The company’s…
A: The receivables turnover ratio is a financial metric that measures how well a firm collects its…
Q: One company has a debit balance of $11325 in its allowance for doubtful accounts before any…
A: Generally allowance for doubtful accounts have a credit balance. Allowance for doubtful accounts…
Q: 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and…
A: The doubtful accounts are the accounts which company finds that they would not be collected in the…
Q: Bramble, Inc. had net sales in 2020 of $1,502,900. At December 31, 2020, before adjusting entries,…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: Wilton, Inc. had net sales in 2020 of $1,400,000. At December 31, 2020, before adjusting entries,…
A: Bad debt expense = Required balance in Allowance for Doubtful Accounts - Already balance in…
Q: Sam’s Auto Parts uses the aging method to estimate bad debt expense. At the end of 2018, the company…
A: : Bad debt is an expense that a business incurs once the repayment of credit previously extended to…
Q: At the end of its first year of operations, on December 31, 2020, Metlock Inc. reported the…
A: Accounts Receivables:- These are the current assets of the company which has to receive within a…
Q: Shannon Corporation began operations on January 1, 2019. Financialstatements for the years ended…
A: An accounting equation is the basic principle of accounting that is used to prepare a balance sheet.…
Q: At the end of its first year of operations, on December 31, 2020, Metlock Inc. reported the…
A: Bad debt expense for 2020 $ 100,000 Written off account $ (22,200) Balance in Allowance…
Q: 36. Akito Company uses the statement of financial position approach in estimating uncollectible…
A: The entity needs to recognize the expense for the uncollectible balance and adjust this balance at…
Q: ts Accounts Receivable at December 31, 2020 and determined that the estimated uncollectibles on that…
A: Accounts written off during current year = Opening balance of allowance for doubtful debt + Bad debt…
Q: The following information is available for Reagan Company: Allowance for doubtful accounts at…
A: The objective of the question is to calculate the bad debt expense for Reagan Company for the year…
Q: On December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected…
A: Accounts receivable indicates the amounts which company has not received from their debtors to whom…
Q: FDN Company reported the following on December 31, 2021, before adjustments: Accounts Receivable…
A: Estimated uncollectible accounts = accounts receivable x uncollectible % Doubtful accounts expense…
Q: The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance…
A: As posted multiple questions we are answering only one question as per our guidelines policy kindly…
Q: The net income for 2018 reported by the accountant of OH MAH GAHD Company amounted to P634,500. Your…
A: Net Income: Sales less cost of products delivered, selling, general and administrative expenditures,…
Q: Clock Company showed the following errors in their account during December 31, 2021: Dividends of P…
A: Solution Concept Failure to record dividend has no impact on the net income as dividend paid is the…
Q: At the end of the current year, using the aging of receivable method, management estimated that…
A: Here it is given opening credit balance and hence to be reduced from current year bad debt…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Under aging of accounts receivable method, the accounts receivables are categorized according to its…
Q: Vaughn, Inc. had net sales in 2025 of $1,470,100. At December 31, 2025, before adjusting entries,…
A: The percentage of accounts receivable method for allowance estimates bad debt by applying a fixed…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Under aging of accounts receivable method, the accounts receivables are categorized according to its…
Q: Atlantic Company reported the following net income: Year 2021 - P 4,000,000, and year 2022 - P…
A: Given net income for 2022 before adjusting errors is P 5,000,000. The errors found during the year…
Q: Delta Company sells to wholesalers on terms 2/15, net 30. Delta has no cash sales but 50% of Delta's…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Upon inspection of the records of Eisenhower Company in connection to its financial statement audit…
A: To find a correct income need to add back the expense that does not belong to a year 2021 and less…
Q: Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before…
A: Adjusting journal entry is made at the end of the fiscal period to reflect the adjustment that has…
Q: Metlock, Inc. had net sales in 2020 of $1,482,700. At December 31, 2020, before adjusting entries,…
A: Estimated Uncollectible = 9% of Accounts Receivables This means the ending balance of Allowance…
Q: Determine the adjusted net income in 2020, 2021, 2022
A: Adjusted net income is the income which has been earned by the company when all the adjustments have…
Q: During fiscal year 2012, Byrd Inc. wrote-off $8,000 of customer accounts as uncollectible. Which of…
A: Uncollectible accounts are those customer accounts to whom business has made credit sales and amount…
Q: At the close of its first year of operations, December 31, 2021, Mega Company had accounts…
A: Gross Accounts Receivable: Gross accounts receivable refers to the total amount of money that…
Q: During 2018, yellow Corp. made sales of 370,000 on account. The balances in its Account Receivable…
A: Bad Debt Expense Is The Amount Of Accounts Receivable Cannot Be Collectible Because a Customer Is…
Q: FDN Company reported the following on December 31, 2021, before adjustments: Accounts Receivable…
A: Estimated uncollectible accounts = accounts receivable x uncollectible % Doubtful accounts expense…
While examining the accounts of Combate Company on December 31, 2020, the following errors were uncovererd:
- Dividends of P100,000 had been declared on December 31, 2020 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 2019. Improvements are estimated to have estimated life of 8 years.
- The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2019 and 2020, respectively
- Supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2019 and 2020, respectively.
What is the net effect of the above errors on 2019 & 2020 net income?
Step by step
Solved in 3 steps with 1 images
- Clock Company showed the following errors in their account during December 31, 2021: Dividends of P 100,000 had been declared but was not recorded on December 10, 2021. Buildings and equipment maintenance for P 480,000 had been debited to expense at the end of April 2020. It had an estimated life of 8 years. The company failed to record sales commissions payable amounting to P 10,500 and P 19,000 at the end of 2020 and 2021, respectively. Supplies on hand amounting to P 6,000 and P 15,000 were not recognized at the end of 2020 and 2021, respectively. What is the net effect of the error in the 2021 net income? a.P 59,500 over b.P 72,200 under c.P 75,000 over d.P 70,000 overplease answer correctly thank you!What is the loss on factoring to be recorded by Rosewell Company? Prepare the journal entry to record the factoring.
- The net income for 2018 reported by the accountant of OH MAH GAHD Company amounted to P634,500. Your audit of the accounts disclosed that the following accounts were not properly accounted: 2017 2018 Rent received in advance 22,500 30,000 Accrued salaries 13,500 18,000 Prepaid interest 33,750 45,000 Commission receivable 15,750 14,625 Depreciation expense 26,250 26,250 Equipment purchased at the beginning of the year charged to expense (10 year life) 75,00010. What is the pre-tax net effect of the above errors on retained earnings on December 31, 2018? A. 3,375 understated B. 3,375 overstated C. 19,125 understated D. 19,125 overstatedAt the close of its first year of operations, December 31, 2021, Mega Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2021, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its statement of financial position at December 31, 2021, as accounts receivable before the allowance for doubtful accounts?Delta Company sells to wholesalers on terms 2/15, net 30. Delta has no cash sales but 50% of Delta's customers take advantage of the discount. Delta uses the gross method of recording sales and trade receivables. An analysis of Delta's trade accounts receivable at December 31, 2011 revealed the following: Age Amount Collectible 0- 15 days 16 - 30 days 31 - 60 days Over 60 days 100% 2,000,000 1,200,000 100,000 50,000 95% 90% 50% 3,350,000 In its December 31, 2011 statement of financial position, what amount should Delta report as allowance for sales discount?
- One company has a debit balance of $11325 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, One company estimates that $1452 of its receivables are uncollectible. As a result it will debit Bad Debts Expense for what amount?The following information is available for Reagan Company: Allowance for doubtful accounts at December 31, 2020 (beginning balance) $ 8,000 Accounts receivable deemed worthless and written off during 2021 9,000 As a result of a review and aging of accounts receivable it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2021. What amount should Reagan record as "bad debt expense" for the year ended December 31, 2021? $4.500 $5.500 $6.500 13.500The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable $53,000 Allowance for doubtful accounts 4,000 Net sales $1,200,000 Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020. 2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2020, disclosed the following. Amounts estimated to be uncollectible $ 180,000 Accounts receivable 1,750,000 Allowance for doubtful accounts (per books) 125,000 What is the net amount expected to be collected of Stuart’s receivables at December 31, 2020? 3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2020. Credit sales during 2020 $4,400,000 Bad debt expense 57,000 Allowance for doubtful…
- At the end of its first year of operations, on December 31, 2020, Metlock Inc. reported the following information: Accounts receivable, net of allowance for doubtful accounts $960,000 Customer accounts written off as uncollectible during 2020 22,200 Bad debt expense for 2020 100,000 What is the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? Accounts receivable, before deducting allowance for doubtful accounts ...?A company reported net income of 9.3 million; 10.3 million and 9.7 million for the years 2020, 2021 and 2022 respectively. In an audit conducted in 2022, the following was determined: a. Harry failed to accrue interest on the following notes. It was revealed that Harry recognizes the total interest income on the notes upon its collection on its due date. Principal Date Received Interest Due Date Note receivable - A 500,000 June 1, 2020 12% October 1, 2021 Note receivable - B 400,000 May 31, 2021 15% June 30, 2022 Note receivable - C 750,000 October 31, 2020 18% November 30, 2022 b. Harry paid 15 months' rent on June 1, 2022 amounting to 210,000. Harry uses the asset method in recording prepayments. No adjustments were made yet concerning this. c. Payment of salaries in 2020 amounting to 380,000 was inadvertently charged against the cash on hand. It should have been charged to cash in bank. d. The ending inventory in 2020 is overstated by 450,000 while the beginning inventory in 2022 is…Your audit of Hemsworth Company’s accounts receivable and its related allowance for doubtful accounts expense revealed the following information: a) The general ledger of Hemsworth Company have the following balances: Accounts receivable P360,000 Allowance for doubtful accounts (1,320) Amortized cost P358,680 b) An aging of Hemsworth Company’s accounts receivable per subsidiary ledgers on December 31, 2021 contained the following: Time Outstanding Amount of Accounts Receivable Under 30 days P240,000 30 – 60 days 48,000 61 – 120 days 36,000 121 – 180 days 24,000 Over 180 days 12,000 P360,000 c) Investigations revealed that 50% of the over 180 days account is definitely uncollectible and that a P12,000 customer credit balance for an advance…