You tested the allowance for uncollectible accounts with regression analysis, and obtained the following results:MAXIMUM TOLERABLE MISSTATEMENT = $500$0$500$750$1,500LCLALLOWUCLTHIS IS THE ALLOWANCE CURRENTLY RECOGNIZED, $750By what amount should the currently recognized allowance, $750, be credited so that the adjusted allowance is materially correct?$250$0$500$750

Lower control Limits (LCL)= $500 Allowance currently recognized= $750 Upper control Limits (UCL)=…

You tested the allowance for uncollectible accounts with regression analysis, and obtained the following results: MAXIMUM TOLERABLE MISSTATEMENT = $500 $0 $500 $750 $1,500 LCL ALLOW UCLI THIS IS THE ALLOWANCE CURRENTLY RECOGNIZED, $750 By what amount should the currently recognized allowance, $750, be credited so that the adjusted allowance is materially correct $250 $0 $500 $750

You tested the allowance for uncollectible accounts with regression analysis, and obtained the following results: MAXIMUM TOLERABLE MISSTATEMENT = $500 $0 $500 $750 $1,500 LCL ALLOW UCLI THIS IS THE ALLOWANCE CURRENTLY RECOGNIZED, $750 By what amount should the currently recognized allowance, $750, be credited so that the adjusted allowance is materially correct $250 $0 $500 $750

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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uncollectible accounts in each age category are as follows: Age Class Balance Percent Uncollectible Not past due $902,000 3/4% 1-30 days past due 292,000 1 31-60 days past due 98,500 8 61-90 days past due 68,000 16 91-180 days past due 44,700 50 Over 180 days past due 15,500 80 $1,420,700 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Estimated Estimated Uncollectible Accounts Uncollectible Accounts Age Class Balance Percent Not past due $902,000 3/4% 1-30 days past due 292,000 1 31-60 days past due 98,500 8 61-90 days past due 68,000 16 91-180 days past due 44,700 50 Over 180 days past due 15,500 80 Total $1,420,700 Check My Work Amount
Question 15 An auditor is required to confirm accounts receivable if the accounts receivable balances are: Older than one year Material to the financial statements Smaller than expected Subject to valuation estimated
Question Content Area Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class PercentUncollectible Not past due 1% 1-30 days past due 5 31-60 days past due 25 61-90 days past due 35 Over 90 days past due 50 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff IndustriesAging of Receivables Scheduleblank Customer Balance Not PastDue 1-30 DaysPast Due 31-60 DaysPast Due 61-90 DaysPast Due Over 90 DaysPast Due Subtotals 840,000 495,600 184,800 75,600 42,000 42,000 Conover Industries 18,100 18,100 Keystone Company 18,200 18,200 Moxie Creek Inc. 6,600 6,600 Rainbow Company 10,000 10,000 Swanson Company 23,100 23,100 Total receivables 916,000 518,700 194,800 82,200 60,200 60,100 Percentage uncollectible 1% 5% 25% 35% 50% Allowance for Doubtful…
You are provided with the following sample observations relating to historical rate of returns and their corresponding probabilities for individual assets, Brad and Ford: Brad Ford Obs E(RB) Prob 1 -0.03 0.01 2 0.07 0.09 3 0.10 0.10 4 0.11 0.20 5 0.02 0.05 6 0.15 0.25 7 0.08 0.05 8 0.09 0.10 9 0.12 0.10 10 0.05 0.05 Obs E(RF) Prob 1 -0.01 0.01 2 0.10 0.09 3 0.15 0.10 4 0.20 0.20 5 0.08 0.05 6 0.25 0.25 7 0.13 0.05 8 0.09 0.10 9 0.11 0.10 10 0.06 0.05 Required: Based on the following information (Note: You can use Microsoft Excel functions to…
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,040. Amount added Ending balance b. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $1,009,000 for the year. Amount added Ending balance
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if your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $135,000. How do you think this misstatement of funds will impact your income statement and your balance sheet?
Can you please do a step by step calculation on the standard deviation please? My calculation isn't coming up to 2.28%? Thanks
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How do I set this up? This is a few questions stuck together. Count as multiple questions I think. 4-12 Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Table for 4-12 Total Current Assets Current Ratio Effect on Net Income a Cash is acquired through issuance of additional stock. b Merchandise is sold for cash. c Federal income tax due for the previous year is paid. d A fixed asset is sold for less than book value. e A fixed asset is sold for more than book value. f Merchandise is sold on credit. g Payment is made to…