Question

Normal 2. AutoSum Format Painter & Center . s-% , Iss , conditional Format as leooawili Neutral Insert Delete Format Sort & F Filter Sa Font Clear Number Styles A13 Cells Lditing REQUIRED: IDENTIFY THE ACCOUNTS AND ASSERTIONISI I FOR EACH CONDITION (Some t situations may alfect more than one assestion class) EXAMPLE The accounting departments chiel bookke handles and processes casheeceipts By delening the recording of eash received from customers, the bookke can conceal a cash shortage. This is done by applying cash received from one customes to the account of anothe CASH CASH-COMPLETENESS AIR EXISTENCE CCOUINTS RECEIVABLE ustomer who has already made a payment As long as there is a steady payment stream by customers, cash can be pulled out of the stream and covered by subsequent payments Globus delayed the recording of a material amount of 7 year 20x1 inventory purchases until 20M2. b. The sales depastment has accepted and entered into are in default. Management has not propexly provided for bad debts transferred its receivables to a third party in eschange for cash. Credco recorded the transfer as a sale of the receivables. The auditoes ate conceined that the ransfer m may actually be a seoured bonoving Misstatement ConditionsProcedures Riskiness 圓画凹 READY

we just need question b .
plz see the example.i need just like that only .

0 0
Add a comment Improve this question Transcribed image text
Answer #1

b)

The two accounts that will affected due to this transaction are "Provision for Doubtful/Bad Debts" and "Accounts Receivable"

Provision for Doubtful/Bad Debts:

Since, management has not made any estimation regarding the uncollectible accounts, hence, it has to make an estimation through the account of "Provision for Doubtful/Bad Debts".

Accounts Receivable:

With affect of this provision for bad debts, the accounts receivable account will be affected because unable to collect from customers who owed.

Note: Answered part b only as requested.

Add a comment
Know the answer?
Add Answer to:
we just need question b . plz see the example.i need just like that only ....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT