ACCOUTING PRIN SET LL INCLUSIVE
ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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e. Of the following, the most significant risk factor relating to the risk of misstatement arising from fraudulent financial reporting for SSC is that: Multiple Choice Company officers serve on the board of directors. The company must refinance a significant portion of its debt. The company operates in the Bisbee, Arizona, area. The company paid no dividend this year. Untitled docume...pdf Untitled docume....pdf docx Presentation se....pdf Untitled docume...pdf 身
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.90% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Year 3 $ 374,000 Year 2 $ 375,000 Unknown 333,000 Unknown 335,750 Unknown Unknown Sales Revenue Bad Debt Expense Other Expenses Net Income Year 1 $ 369,000 Unknown 340,000 Unknown Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.90% of sales. b. Assume that the company changes its estimate of uncollectible credit sales to 1.90% in Year 1, 2.90% in Year 2 and 2.40% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.40% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years.    Year 1   Year 2   Year 3   Sales Revenue $ 377,000     $ 383,000     $ 382,000     Bad Debt Expense   Unknown       Unknown       Unknown     Other Expenses   330,000       336,000       334,750     Net Income   Unknown       Unknown       Unknown         Required: Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.40% of sales. Assume that the company changes its estimate of uncollectible credit sales to 1.40% in Year 1, 2.40% in Year 2 and 1.90% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario
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