You are assigned to audit Ignation Inc. for the year ended June 30, 2022. Prior to any adjustments, you were able to extract the following balances from the client's records: Accounts receivable control account Allowance for bad debts beginning 30,150 Your audit client provided you the schedule of the accounts receivable subsidiary ledger based on ageing policy: Accounts with debit balances: 60 days old and below 61 to 120 days Over 120 days Accounts with credit balances Accounts receivable per GL P540,000 P230,000 270,000 75,000 P575,000 (35,000) P540,000
You are assigned to audit Ignation Inc. for the year ended June 30, 2022. Prior to any adjustments, you were able to extract the following balances from the client's records: Accounts receivable control account Allowance for bad debts beginning 30,150 Your audit client provided you the schedule of the accounts receivable subsidiary ledger based on ageing policy: Accounts with debit balances: 60 days old and below 61 to 120 days Over 120 days Accounts with credit balances Accounts receivable per GL P540,000 P230,000 270,000 75,000 P575,000 (35,000) P540,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Determine the following as a result of your audit:
a. What is the correct balance of the accounts receivable as of June 30, 2022?
b. What is the balance of the allowance for
c. What is the balance of bad debts expense in its income statement for year ended June 30, 2022?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education