Question-3 (proper working and computation required) 3a. Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If Allowance for Doubtful Accounts has a debit balance of $4,000 before adjustment, what is the balance after adjustment? 3b. As of December 31, 2018, Candyland Company has assets of $3,500 and owner’s equity of $2,000. What are the liabilities for Candyland Company as of December 31, 2018

Question-3 (proper working and computation required) 3a. Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If Allowance for Doubtful Accounts has a debit balance of $4,000 before adjustment, what is the balance after adjustment? 3b. As of December 31, 2018, Candyland Company has assets of $3,500 and owner’s equity of $2,000. What are the liabilities for Candyland Company as of December 31, 2018

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 4MC

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Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the gross profit margin and operating margin percentage for 2019. ( Note: Round answers to two decimal places.) 2. Assuming that all of the operating expenses are fixed (or, wont change as sales increase or decrease), what will be the operating margin percentage if sales increase by 25%?
Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500
3a. Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If Allowance for Doubtful Accounts has a debit balance of $4,000 before adjustment, what is the balance after adjustment? 3b. As of December 31, 2018, Candyland Company has assets of $3,500 and owner’s equity of $2,000. What are the liabilities for Candyland Company as of December 31, 2018?
Question 1 - PART AYaso plc is a manufacture company and its financial year ended at 31st December 2019.Total assets are £40m and net profit before tax is £12m. Yaso plc’s trade receivables ledgerincludes a large number of customers. The year-end trade receivables balance is £4m(comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparableto £600,000 in 2018). PART A Requirement:• Describe substantive procedures the auditor should perform to obtain sufficient andappropriate audit evidence in relation to Yaso plc’s trade receivables. QUESTION 1 - PART B According to ISA 260, it is important for auditors to communicate throughout the auditwith those charged with governance. PART B Requirement: • Explain why it is important for auditors to communicate with those chargedwith governance.• Identify three examples of matters which the auditor may communicate to those chargedwith governance.
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Problem 3 On January 1,2020, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year were P9,000,000. On December 31,2020, what amount should be reported as allowance for uncollectible accounts?
American Chip Corporation's reporting year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2021. Account Title Debits Credits Retained earnings 80,000 Sales revenue 750,000 Interest revenue 3,000 Cost of goods sold 420,000 Salaries expense 100,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 5,000 Insurance expense 6,000 Required:Prepare the necessary closing entries at December 31, 2021.