Accounts receivable

that is not paid in full within 10 days of maturity. | 14. The following information is related to December 31, 2011 balances.   During 2012 sales on account were $145,000 and collections on account were $86,000. Also, during 2012 the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000. The change in the cash realizable value from the balance at 12/31/11 to 12/31/12 was (Points

records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers Accounts payable ledger Subsidiary ledger listing individual creditor (supplier) accounts Accounts receivable ledger Subsidiary ledger listing individual customer accounts. Batch processing Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month. Cash disbursements

Introduction When analyzing a copy for the means of producing a deliverable audit report, there are a few details that must be considered first. One of the important aspects to increase risk awareness and improve upon the current operations. To convey this thru the reporting, it is important to know the organizations reporting practices; when and to who do they report the finding to? Once the auditor has this information, they need to determine the objective for the audit. Knowing this information

matching return to accounts receivable. These circumstances allow opportunities where employees take home returned items. Another issue that I would address is lack of control procedures and guidelines in handling and recording accounts receivable. This is much more important now since a major client who represents 31% of total sales is experiencing financial difficulty. I will discuss more detail on this issue in next section. Issue on abilities of Collection and Receivable management procedure

company’s bank account. | |Aug 31 |Received electricity bill for the month, $400 | |Aug 31 |Paid employees $2,200 for salaries earned by administrative personnel in August. | Note: Physical count revealed that $3,000 cost of supplies still remained at the end of the month. Required a. Prepare journal entries for the above transactions b. Post to ledger accounts c

1,500 Inventory December 31, 2007 (adjusted) $237,392 (b) Transaction 3 Sales 12,800 Accounts Receivable 12,800 (To reverse sale entry in 2007) Transaction 4 Purchases (Inventory) 15,630 Accounts Payable 15,630 (To record purchase of merchandise in 2007) Transaction 8 Sales Returns and Allowances 2,600 Accounts Receivable 2,600 EXERCISE 8-14 (20–25 minutes) (a)

in this company is a material number. Once I had this number I then went through each account and compared the 2014 and 2015 numbers. I calculated the difference between each year, any number found with a difference of $75,400 or more, had a high risk of materiality misstatement. The accounts that appeared to be at risk of being materially misstated are: Cash (existence), Short-term securities, Accounts Receivable and Sales (existence, occurrence, completeness), inventory and cost of goods sold (existence

Christine Ewing, Capital | | 44,000 | | | | | | | 2 | No entry—not a transaction. | | | | | | | | | 3 | Supplies | 700 | | | | Accounts Payable | | 700 | | | | | | | 7 | Rent Expense | 600 | | | | Cash | | 600 | | | | | | | 11 | Accounts Receivable | 1,100 | | | | Service Revenue | | 1,100 | | | | | | | 12 | Cash | 3,200 | | | | Unearned Service Revenue | | 3,200 | | | |

for account receivable turnover. For Caltron Ltd., in 2001 the account receivable turnover was 37days, in 2002 the account receivable turnover was 43days and in 2003 the account receivable turnover was 46days. It shows that Caltron Ltd. takes longer time to collect payment from their debtors as compared to the industry average. Over the years, the number of days needed to collect payment has increased once the sales have been made. This show a poor or week monitoring system of the receivable account

a). |Account Balance |% change 2010-2011 |% Change 2009-2010 | |Net sales |1.45% |2.70% | |Cash |5.41% |-9.19% | |Net income |16.50% |-39.54% | |Accounts payable |37