During an audit, an audit is required to establish performance materiality for several balance sheet accounts....
During an audit, an audit is required to establish performance materiality for several balance sheet accounts. Explain/justify how you would choose the performance materiality amounts for each of the following accounts: (a) accounts receivable, (b) allowance for bad debt, (c) accounts payable.
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During an audit, an audit is required to establish performance
materiality for several balance sheet accounts....
Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts...
Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by $55,000, what should the auditor do? A. If accounts receivable testing was performed using sampling techniques, the auditor would also project total known misstatements to the population and may perform additional tests depending on the outcome. B. If performance materiality for accounts receivable is $40,000 and the auditor finds...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable,...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,127 Allowance for Doubtful Accounts (XA) 8,409 Accounts Receivable (Net) (A) $ 39,718 During the current year, sales on account were $305,048, collections on account were $290,100, write-offs of bad debts were $6,994, and the bad debt expense adjustment was $4,710. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine...
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts recei...
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $16,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $266,800, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 29,300. Required: 1. What was the...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. $ Accounts...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. $ Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (A) 48, 151 8.419 $ 39,732 During the current year, sales on account were $305,298, collections on account were $290,200, write-offs of bad debts were $7,004, and the bad debt expense adjustment was $4,720. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to...
E6-8 (Algo) Reporting Bad Debt Expense and Accounts Receivable LO6-2 At the end of the prior...
E6-8 (Algo) Reporting Bad Debt Expense and Accounts Receivable LO6-2 At the end of the prior year, Durney's Outdoor Outfitters reported the following information Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,103 Allowance for Doubtful Accounts (XA) 8.399 $ 39,704 Accounts Receivable (Net) (A) During the current year, sales on account were $304,798, collections on account were $290,000, write-offs of bad debts were $6,984. and the bad debt expense adjustment was $4,700. Required: 1-a. Complete the...
Check At the end of the prior year, Durney's Outdoor Outfitters reported the following information Accounts...
Check At the end of the prior year, Durney's Outdoor Outfitters reported the following information Accounts Receivable, Dec. 31, prior year Accounts Receivable (rosa) (A) Allowance for Doubtful Recounts (A) Accounts Receivable (Not) (A) During the current year, sales on account were $305,173, collections on account were $290,150, write-offs of bad debts were $6,999, and the bad debt expense adjustment was $4,715 Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values....
Problem 7-1 (Algo) Uncollectible accounts; allowance method; income statement and balance sheet approach [LO7-5, 7-6] Swathmore...
Problem 7-1 (Algo) Uncollectible accounts; allowance method; income statement and balance sheet approach [LO7-5, 7-6] Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted...
P 7–1 Uncollectible accounts; allowance method; income statement and balance sheet approach L07-5, 407-6 Swathmore Clothing...
P 7–1 Uncollectible accounts; allowance method; income statement and balance sheet approach L07-5, 407-6 Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly....
During the current year, Bob's Ceramics Shop had sales revenue of $60,000, of which $25,000 was...
During the current year, Bob's Ceramics Shop had sales revenue
of $60,000, of which $25,000 was on credit. At the start of the
current year, Accounts Receivable showed a $3,500 debit balance and
the Allowance for Doubtful Accounts showed a $300 credit balance.
Collections of accounts receivable during the current year amounted
to $18,000.
Data during the current year follow:
a. On December 31, an Account Receivable (Toby’s Gift Shop) of $550
from a prior year was determined to be...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable,...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,127 Allowance for Doubtful Accounts (XA) 8, 409 Accounts Receivable (Net) (A) $ 39,718 During the current year, sales on account were $305,048, collections on account were $290,100, write-offs of bad debts were $6,994, and the bad debt expense adjustment was $4,710. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,127 Allowance for Doubtful Accounts (XA) 8,409 Accounts Receivable (Net) (A) $ 39,718 During the current year, sales on account were $305,048, collections on account were $290,100, write-offs of bad debts were $6,994, and the bad debt expense adjustment was $4,710. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine...
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $16,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $266,800, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 29,300. Required: 1. What was the...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. $ Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (A) 48, 151 8.419 $ 39,732 During the current year, sales on account were $305,298, collections on account were $290,200, write-offs of bad debts were $7,004, and the bad debt expense adjustment was $4,720. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to...
E6-8 (Algo) Reporting Bad Debt Expense and Accounts Receivable LO6-2 At the end of the prior year, Durney's Outdoor Outfitters reported the following information Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,103 Allowance for Doubtful Accounts (XA) 8.399 $ 39,704 Accounts Receivable (Net) (A) During the current year, sales on account were $304,798, collections on account were $290,000, write-offs of bad debts were $6,984. and the bad debt expense adjustment was $4,700. Required: 1-a. Complete the...
Check At the end of the prior year, Durney's Outdoor Outfitters reported the following information Accounts Receivable, Dec. 31, prior year Accounts Receivable (rosa) (A) Allowance for Doubtful Recounts (A) Accounts Receivable (Not) (A) During the current year, sales on account were $305,173, collections on account were $290,150, write-offs of bad debts were $6,999, and the bad debt expense adjustment was $4,715 Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values....
Problem 7-1 (Algo) Uncollectible accounts; allowance method; income statement and balance sheet approach [LO7-5, 7-6] Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted...
P 7–1 Uncollectible accounts; allowance method; income statement and balance sheet approach L07-5, 407-6 Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly....
During the current year, Bob's Ceramics Shop had sales revenue
of $60,000, of which $25,000 was on credit. At the start of the
current year, Accounts Receivable showed a $3,500 debit balance and
the Allowance for Doubtful Accounts showed a $300 credit balance.
Collections of accounts receivable during the current year amounted
to $18,000.
Data during the current year follow:
a. On December 31, an Account Receivable (Toby’s Gift Shop) of $550
from a prior year was determined to be...
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,127 Allowance for Doubtful Accounts (XA) 8, 409 Accounts Receivable (Net) (A) $ 39,718 During the current year, sales on account were $305,048, collections on account were $290,100, write-offs of bad debts were $6,994, and the bad debt expense adjustment was $4,710. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to...
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