High company, your client, failed to record accrued salaries expense of 50,000 as of December 31, 2022 Based on the foregoing, answer the following questions: 1.) Which of the following accounts is(are) understated by 50,000 at the end of year 2022 as a result of the error? 2.) Which of the following accounts is(are) overstated by 50,000 at the end of year 2023 as a result of the error? 3.) What would be the adjusting entry if the error is discovered in year 2022? 4.) What would be the adjusting entry if the error is discovered in year 2023? 5.) What would be the adjusting entry if the error is discovered in year 2024
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
High company, your client, failed to record accrued salaries expense of 50,000 as of December 31, 2022
Based on the foregoing, answer the following questions:
1.) Which of the following accounts is(are) understated by 50,000 at the end of year 2022 as a result of the error?
2.) Which of the following accounts is(are) overstated by 50,000 at the end of year 2023 as a result of the error?
3.) What would be the
4.) What would be the adjusting entry if the error is discovered in year 2023?
5.) What would be the adjusting entry if the error is discovered in year 2024?
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