Homework Answers
Explanation:
Ageing accounts receivable report is used to verify the period of unpaid balance due from the customers to whom goods or services have been sold on credit basis.
This helps the business to identify the customers who are late in making payments of their due amount and necessary steps are taken by the organisation.
the aged account receivable report are also used by the auditor to evaluate the adequacy of the allowance for doubtful accounts.
Therefore option "B" is correct answer.
Other options explanation
- Option A is incorrect as aged accounts receivable report is used to check the unpaid balances with the client it has nothing to do with banks.
- Option C is incorrect because Auditor has duty to check whether the books of accounts present correct information. Auditor has not to encourage the client to collect the receivable amount.
- Option D is incorrect because auditor will verify whether amount charged to doubtful or bad that is accurate or not if amount charged to doubtful that is incorrect he will ask client to credit them back to the payables.
Not the correct amount debited to receivable will be credited to payables.
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Problem 3 (10 points): Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as...
Problem 3 (10 points): Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in millions): Estimated % uncollectible 1% 3% Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due Total Balance $11,000 2,400 1,700 840 $15,940 6% 10% a. Determine the appropriate allowance for uncollectible accounts. b. How will Heller Corporation report its accounts receivable on the balance sheet?
Silver Key Corporation estimates its annual provision for uncollectible accounts by analyzing the aged schedule of...
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Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,400,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,904. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category...
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Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,500,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,900. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category...
2. ABC Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands): Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due Total Balance $10,000 15,000 8,000 7,500 $40,500 Estimated % uncollectible 1% 5% 10% 30% a. Determine the appropriate allowance for uncollectible accounts. b. How will ABC Corporation report its accounts receivable on the balance sheet?
Problem 3 (10 points): Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in millions): Estimated % uncollectible 1% 3% Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due Total Balance $11,000 2,400 1,700 840 $15,940 6% 10% a. Determine the appropriate allowance for uncollectible accounts. b. How will Heller Corporation report its accounts receivable on the balance sheet?
Silver Key Corporation estimates its annual provision for uncollectible accounts by analyzing the aged schedule of accounts receivable. (Click the icon to view the schedule of accounts receivable.) It is common industry practice to estimate an allowance for uncollectible accounts based on the following estimates. (Click the icon to view the allowances provided.) Prepare the journal entry to record the provision for bad debts assuming that the existing credit balance in the allowance for doubtful accounts is equal to $23,150....
A recent annual report for NPS contained the following data Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) (dollars in thousands) Current Year Previous Year $ 3,737,000 $4,547,000 178,000 145,000 5 3,559, eee $4,402,800 $34,597,000 Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year (Use 365 days a year. Do not round Intermediate calculations. Enter your answers in thousands not in dollars.) Receivables Turnover...
Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,400,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,904. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category...
Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,500,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,900. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category...
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