After all the ledgers had been drawn up, the following differences and errors were identified.Indicate with a cross (X) where you would correct each of the differences and errors listed below,and explain your reasoning as so how, why and where you will make the correction:Hint: some might need to be corrected in more than one place.Difference or errorDebtors listDebtors controlEg. The totol sales return column inthe Debtors Allowance Journal wasposted to the debit side of the Debtors Soles returns reduce the omount owing by o debtor.Control Account.The error has occurred in the Debtors control accountonly, thus there wil be no impact on the individualdebtor's occount. The debtors control account shouldbe credited twice.A credit invoice (issued by thebusiness) has not been recorded at all.The Debtors control column in thedebtors journal was "undercast".Notification has been received that theoutstanding balance on one of thedebtors should be written off as thedebtor is insolvent.END OF PAPER

Debtor- It defines those persons who get goods from the entity not in cash but on credit or any…

Answered: After all the ledgers had been drawn…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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After all the ledgers had been drawn up, the following differences and errors were identified.Indicate with a cross (X) where you would correct each of the differences and errors listed below,and explain your reasoning as so how, why and where you will make the correction:Hint: some might need to be corrected in more than one place.Difference or error Debtors control Debtors listA credit invoice (issued by thebusiness) has not been recorded at all.The Debtors control column in thedebtors journal was “undercast”.Notification has been received that theoutstanding balance on one of thedebtors should be written off as thedebtor is insolvent.
Which of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.
You have Noticed that the A/R clerk has created abnormally high number of credit memos . You also notice the inventory does not reflect the additional inventory resulting from the sales returns. What would you do, and how would you document your decision?
Amounts due from customers that are expected to be collected in the current operating cycle and do not charge interest are known as: Group of answer choices sales returns & allowances cost of goods sold accounts receivable notes receivable The allowance method of estimating uncollectible accounts is widely-used because it follows this principle: Group of answer choices Matching Going-concern Revenue Recognition Cost
Which one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of time
Sales ledger control Account is known to have a debit balance. Explain, using numerical example why at certain instances the account has both debit and credit balance brought down? Construct a Purchase Ledger Control Account, using your own numerical example, with five items? Briefly discuss the role of the control accounts in the identification of missing figures in the financial statements of organizations ?
Compare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense
Which of the following is true? a. When individual customers’ accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers’ accounts on the statement of financial position. b. Sales revenue is increased by a recovery of an account previously written off. c. It is appropriate to measure the impairment of receivables based on recognized sales and other revenues. d. A noninterest-bearing promissory note is measured on the statement of financial position at face value less the amount of unamortized discount.
When a large account receivable balance is due from one client it is logical to use the direct write-off method to adjust the bad debt expense and accounts receivable balance. Under different circumstances, another method is used called the allowance method. Discuss the best reason(s) for using the allowance method and give some examples of companies that are likely to use that method. Also explain why it would ever be appropriate to use the direct write-off method, especially since it is not GAA
Which one of the following statements concerning bad debt expenses is correct? Select one: a. When you write off an accounts receivable, you debit bad debt expense and credit accounts receivable. b. You record bad debt expense when individual accounts receivable becomes uncollectible. c. Under the percentage of receivables method, bad debt expense is the year-end receivables multiplied by the % of uncollectible accounts. d. When the allowance method is used, bad debt expense is recorded before the accounts are written off.
When a large account receivable balance is due from one client it is logical to use the direct write-off method to adjust the bad debt expense and accounts receivable balance. Under different circumstances, another method is used called the allowance method. Discuss the best reason(s) for using the allowance method and give some examples of companies that are likely to use that method. Also explain why it would ever be appropriate to use the direct write-off method, especially since it is not GAAP.
While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that Group of answer choices A. Accounts Receivable will be understated. B. the error will overstate the debits listed in the journal. C. the trial balance will not balance. D. the total credits in the trial balance will be larger than the total debits.

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