In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Balance Current Past Due Customer 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 3. This Boy Company 350,000 92,000 258,000 4. Girl Corporation 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 256,000 80,000 176,000 240,000 240,000 9. Yesterday Corporation Totals P2,020,000 P936.000 P1,084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.
In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted some comments for possible adjustments: Beatles Company Accounts Receivable Schedule December 31, 2005 Balance Current Past Due Customer 1. Love M. Do P92,000 P- P92,000 2. Strawberry Fields 420,000 248,000 172,000 3. This Boy Company 350,000 92,000 258,000 4. Girl Corporation 374,000 212,000 162,000 5. Ticket To Ride Transport Corp. 160,000 160,000 6. Let It Be Corporation 124,000 60,000 64,000 7. Hey Jude 4,000 4,000 8. Get Back Company 256,000 80,000 176,000 240,000 240,000 9. Yesterday Corporation Totals P2,020,000 P936.000 P1,084.000 The Accounts Receivable control account balance was determined to be P2,020,000. The external auditor submitted the following audit comments for possible adjustments: 1. Love M. Do Merchandise found defective; returned by customer on October 31, 2005 for credit, but the credit memo was issued by Beatles only on January 15, 2006. Account is good but usually pays late. 2. Strawberry Fields 3. This Boy Company Merchandise worth P160,000 was destroyed while in transit on May 31, 2005, terms FOB Destination. The carrier was billed on June 15, 2005. (See Ticket To Ride Corp. and Yesterday Corp.) 4. Girl Corporation Customer billed twice in error for P40,000. Balance is collectible.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Completing A Quality Audit
Section: Chapter Questions
Problem 4RQSC
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REQUIRED:
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b. Adjusted balance of
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