Question

can you help me spot my errors in the assumption?

Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. b. Prepaid insurance represents a 12-month insurance policy purchased on May 1. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019. d. Supplies on hand total 54,674 Equipment is depreciated on a straight-line basis, residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate h. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019 i Accrued wages totaling 571,490 were unpaid and unrecorded at December 31, 2019. 11 ] Utility costs incurred but unrecorded for the month of December were estimated to be $12,314. MA La Du in years prepare Owl Workshootlal Assumptions (1) Aging Analysis (2 adjusting Journal Entriould income Statoment(s) MacBook Pro esc LB B I V E QWERT

Answer 1

Point No. D- Consulting unearned revenue will be for 8 month instead of 12 month.

Point No. H- The company uses the percentage of receivable basis for calculating estimated uncollectible accounts . Here percentage is missing . Percentage Will be required to determine management's desire balance.