Why do you think The Gap reports more than one year of data in its financial statements?
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A: For many years, Carefree Company has estimated Bad Debt Expense using the aging of accounts…
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A: Aging analysis is very important in financial health of company and credit policy of the company.
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A: The correct option is C i.e. Estimating the appropriate balance for the allowance for doubtful…
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A: Accrued liabilities represent expenses that a company has incurred but has not yet paid as of the…
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Q: Which of the following would not be considered an analytical procedure?
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A: The correct answer is: (B) net cash provided by operating activities is consistently lower than net…
Q: deficit
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Q: receivables appear to be abnormally high?
A: Option a is wrong because the expansion of sales volume late in the year is a factor to be…
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Q: ous period’s financial statements are called?
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A: Dear student, I have provided an answer and explanation to your assignment. Please pay close…
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A: Accounts Receivable -All money owed by clients to you for products or services they have previously…
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A: Current ratio = Current Assets / Current Liabilities Quick Ratio = [ Current Assets - Inventory ] /…
Q: You tested the allowance for uncollectible accounts with regression analysis, and obtained the…
A: Lower control Limits (LCL)= $500 Allowance currently recognized= $750 Upper control Limits (UCL)=…
Why do you think The Gap reports more than one year of data in its financial statements?
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- Which of the following statements is true regarding aging accounts receivable? Multiple Choice The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. All of the statements are true. The aging of accounts receivable involves applying lower uncollectible percentage estimates to older receivables. An aging schedule is used to improve the estimate used in the percent of revenue method of determining the uncollectible accounts expense.Health Corporation has several current notes receivable on its year-end balance sheet. While collection seems certain, it may be delayed beyond one year. Because of this, the controller wants to re-classify these notes as non-current. Health's treasurer also thinks that collection will be delayed but does not favor re-classification because this will reduce the current ratio from 1.5:1 to 0.8:1. This reduction in current ratio is detrimental to company prospects for securing a major loan. 1. Should the controller re-classify the notes? Give reasoning. 2. Does the treasurers position pose an ethical dilemma for the controller. Explain.An auditor's analytical procedures have revealed that the accounts receivable of a client have doubled since the end of the prior year. However, the allowance for doubtful accounts, as a percentage of accounts receivable remained about the same. Which of the following client explanations most likely would satisfy the auditor? a. Credit standards were liberalized in the current year. b. Twice as many accounts receivable were written off in the prior year as compared to this year. c. A greater percentage of accounts were currently listed in the "more than 90 days overdue" category than in the prior year. d. The client opened a second retail outlet in the current year and its credit sales approximately equaled the older, established outlet.
- Use the Dynamic Exhibit to answer the following questions. 1. When the percent of uncollectible accounts is .75%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 2 2. When the percent of uncollectible accounts is 1%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 4 3. When the unadjusted balance of Allowance for Doubtful Accounts is a debit of $2,100, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 5 4. When the unadjusted balance of Allowance for Doubtful Accounts is a credit of $3,250, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 6If 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.If a company’s current ratio declined in a year during whichits quick ratio improved, which of the following is the mostlikely explanation?a. Inventory is increasing.b. Inventory is declining.c. Receivables are being collected more rapidly than inthe past.d. Receivables are being collected more slowly than inthe past.
- Explain the term “aging of accounts”? Explain with one example.How many new accounts would be needed?USE TGHE FOLLOWING TO SOLVE FOR QUESTION7 ONLY Tooele Company’s controller estimated bad debt expense using the percentage of accountsreceivable method. Total sales for the year were $500,000 of which 250,000 are on account.The ending balance in accounts receivable was $100,000. An examination of the outstandingaccounts at the end of the year indicates that approximately 12 percent of these accounts willultimately prove to be uncollectible. Before any adjusting entries, the balance in theAllowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjustingentry to record bad debt expense for the year?(The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or theAllowance for Uncollectible Accounts.)a. CREDIT Allowance for Bad Debts for $11,300b. DEBIT Allowance for Bad Debts for $11,300c. CREDIT Allowance for Bad Debts for $12,000d. CREDIT Allowance for Bad Debts for $12,700e. DEBIT Allowance for Bad Debts for $14,700 5. Use the…
- True or False.Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Sales $ 666,761 $ 432,962 $ 344,990 $ 249,090 $ 180,500 Cost of goods sold 329,263 213,901 172,445 124,054 88,445 Accounts receivable 32,138 25,242 23,632 14,547 12,328The following information pertains to Striker Corporation, together with its DSO of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO/ACP to the benchmarks’ average. If this were done, by how much would receivables decline? Use a 365-day year. Sales=P110,000; Accounts receivable= P16,000; Days sales outstanding (DSO/ACP)=53.09; Benchmark days sales outstanding (DSO/ACP)=20.00 *