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Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. P9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? c. P105,270 а. Р324,000 b. Р429,270 d. P753,270

Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. P9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? c. P105,270 а. Р324,000 b. Р429,270 d. P753,270

Auditing: A Risk Based-Approach (MindTap Course List)
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
Chapter15: Audit Reports For Financial Statement Audits
Section: Chapter Questions
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Please answer no.19-20 correctly and provide computation. Thank you;)

Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. Р9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? а. Р324,000 b. P429,270 C. P105,270 d. P753,270
Transcribed Image Text:Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. Р9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? а. Р324,000 b. P429,270 C. P105,270 d. P753,270
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