What evidence is utilized by the auditor for analytical purposes in substantiating the completeness of the...
What evidence is utilized by the auditor for analytical purposes in substantiating the completeness of the allowance for bad debt estimate?
| a. |
Confirmations returned without exception. |
|
| b. |
Copies of checks received from customers. |
|
| c. |
Stock prices of customer companies. |
|
| d. |
Accounts receivable aging schedule. |
Homework Answers
answer : d) Accounts receivable aging schedule
explanation
1)Accounts receivable aging schedule is utilized by the auditor for analytical purposes in substantiating the completeness of the allowance for bad debt estimate.
2)An aging schedule is a table presenting the accounts receivable in to separate time brackets and rank the receivable based on their due dates or past dues(based on their age )
3)accounts receivable aging schedule is helpful to estimate allowance for bad debts based on the 30 day overdue 60 day over due and 90 day overdue etc
4)An aging schedule is useful for comparing the actual bad debt written off and age of the debts
5)accounts receivable aging schedule is helpful for collecting and estimating and determining the accounts receivable balance
Add Answer to:
What evidence is utilized by the auditor for analytical purposes
in substantiating the completeness of the...
Drag the words into the correct boxes - An amount owed by a customer who has...
Drag the words into the correct boxes - An amount owed by a customer who has purchased the company's product or Percentage-of-receivables approach Accounts Receivable service. Allowance for bad debts - The amount of cash that a company expects to collect from its total accounts Allowance Method receivable. - The expense resulting from the inability to collect accounts receivable. Bad Debt Expense Percentage-of-sales approach Net realizable value Aging Schedule Direct Write-Off Method - Method in which bad debt expense is...
Problem One - Chapter 7: Part. A: You are the lead auditor for the Bella Luna...
Problem One - Chapter 7: Part. A: You are the lead auditor for the Bella Luna Tree Company, Inc. in Bethel, CT. The company has a June 30" year end, and the audit team is discussing strategies for confirming year end accounts receivable. The composition of the accounts receivable is as follows: Total Accounts Receivable (before any Allowance for Doubtful Accounts): $4,584,600 Aged Composition: $ 3.667.680 Zero - 30 days 687,690 Thirty-60 days 183,390 Sixty - 90 Days 45,840 Over...
answers to all parts of the questions Ul tile direct write-off pulise Mingenback method of reporting...
answers to all parts of the questions
Ul tile direct write-off pulise Mingenback method of reporting bad debt wll record? expense? Presented below is an aging schedule for Halleran Company Worksheet.xls Page LayoutFosrulasDila Revew Vie Journalize ransacrio debts. Home Insert P18 LO 2) Number of Days Past Due Not Yet Due Customer Total XLS 4 Anders 5 Blake 6 Coulson 7 Deleon 8 Others 1-30 31-60 61-90 Over 90 T0,000 $12,000 40,000 40,000 57,000 34,000 16,000 6,000 35,000 $34,000 285,000...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts Receivable, Net in the amount of $19,000. On January 2, 2019, Grandview writes off a $1,900 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? 1 Multiple Choice $20.900. 0 O $17,100. 0 0 $19,000 0 $1,900 $1,900 0 Kelton Inc. reported net credit sales of $320,000 for the...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically because a. the company's records and the bank's records are in agreement b. the bank has not recorded all of its transactions e. any differences between the company's records and the bank's records should be determined, and made by either party should be discovered and corrected d. the bank must make sure that its records are correct 3. Gunnar Company gathered the following reconciling...
Auditors have a responsibility to remain alert to audit evidence that contradicts other audit evidence obtained. The app...
REMOVEDAuditors have a responsibility to remain alert to audit evidence that contradicts other audit evidence obtained. The application of professional skepticism is essential to the critical assessment and questioning of contradictory audit evidence. When the auditor obtains information during the course of the audit that contradicts information obtained from another source, the auditor has a responsibility to resolve the matter and consider its impact on the sufficiency and appropriateness of audit evidence obtained and the effect, if any, on other...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
1. Consider the following statements: I. Lapping involves covering a theft related to accounts receivable...
1. Consider the following statements: I. Lapping involves covering a theft related to accounts receivable by using a later cash receipt to cover the previous theft. II. A “positive confirmation” requests that customers respond whether they agree or not with the amount due to the entity stated in the confirmation. a. I is true; II is true b. I is true; II is false c. I is false; II is true d....
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies...
Treat the following parts as three independent situations. Part 1 of 3 Lynbrook Automotive, Inc. applies the allowance method to record transactions relating to their accounts receivables. On December 31, 2019, the company had a debit balance of $700,000 in Accounts Receivable and a credit balance of $20,000 in their Allowance for Doubtful Accounts. During 2020, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts. These transactions are summarized as follows: a) Provided...
Drag the words into the correct boxes - An amount owed by a customer who has purchased the company's product or Percentage-of-receivables approach Accounts Receivable service. Allowance for bad debts - The amount of cash that a company expects to collect from its total accounts Allowance Method receivable. - The expense resulting from the inability to collect accounts receivable. Bad Debt Expense Percentage-of-sales approach Net realizable value Aging Schedule Direct Write-Off Method - Method in which bad debt expense is...
Problem One - Chapter 7: Part. A: You are the lead auditor for the Bella Luna Tree Company, Inc. in Bethel, CT. The company has a June 30" year end, and the audit team is discussing strategies for confirming year end accounts receivable. The composition of the accounts receivable is as follows: Total Accounts Receivable (before any Allowance for Doubtful Accounts): $4,584,600 Aged Composition: $ 3.667.680 Zero - 30 days 687,690 Thirty-60 days 183,390 Sixty - 90 Days 45,840 Over...
answers to all parts of the questions
Ul tile direct write-off pulise Mingenback method of reporting bad debt wll record? expense? Presented below is an aging schedule for Halleran Company Worksheet.xls Page LayoutFosrulasDila Revew Vie Journalize ransacrio debts. Home Insert P18 LO 2) Number of Days Past Due Not Yet Due Customer Total XLS 4 Anders 5 Blake 6 Coulson 7 Deleon 8 Others 1-30 31-60 61-90 Over 90 T0,000 $12,000 40,000 40,000 57,000 34,000 16,000 6,000 35,000 $34,000 285,000...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts Receivable, Net in the amount of $19,000. On January 2, 2019, Grandview writes off a $1,900 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? 1 Multiple Choice $20.900. 0 O $17,100. 0 0 $19,000 0 $1,900 $1,900 0 Kelton Inc. reported net credit sales of $320,000 for the...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically because a. the company's records and the bank's records are in agreement b. the bank has not recorded all of its transactions e. any differences between the company's records and the bank's records should be determined, and made by either party should be discovered and corrected d. the bank must make sure that its records are correct 3. Gunnar Company gathered the following reconciling...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago