ABC Co. reported net income for the first two years of operation of P120,000 and P180,000 in 20x1 and20x2, respectively. In 20x2, the following prior period errors were discovered:Advances to supplier in 20x1 were recorded as purchases but the merchandise was received in thefollowing year, P20,000.Advances from customers in 20x1 recorded as sales in 20x1 but the goods were delivered in thefollowing year, P50,000.• On December 31, 20x1, the ending inventory was overstated by P25,000.Required:1. Adjusted net income for 20x22. Adjusted retained earnings as of December 31, 20x1

Name: ABC Co. reported net income for the first two years of operation of P
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Description: ABC Co. reported net income for the first two years of operation of P120,000 and P180,000 in 20x1 and20x2, respectively. In 20x2, the following prior period errors were discovered:Advances to supplier in 20x1 were recorded as purchases but the merch

Normally, purchases should be recorded only when we have received the goods. The sales should be…

Answered: Required: 1. Adjusted net income for…

Business

Accounting

Required: 1. Adjusted net income for 20x2 2. Adjusted retained earnings as of December 31, 20x1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...

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Tanke Company reported net income on the year-end financial statements of $850,200. However, errors in inventory were discovered after the reports were issued. If inventory was overstated by $21,000, how much net income did the company actually earn?
Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
A company has an opening credit balance in Allowance for Doubtful Accounts of $1,500. Its sales for the year total $400,000. Management estimates that 1% of sales are uncollectible. What is the balance of the Allowance for Doubtful Accounts at the end of the year using the income statement method? a. 4,000 b. 2,500 c. 5,500 d. none of the above
4. At the year-end of T Down & Co, an imbalance in the trial balance was revealed which resulted in the creation of a асcount with credit balance of $1,040. suspense Investigations revealed the following errors. a. A sale of goods on credit for $1,000 had been omitted from the sales account. a b. Delivery and installation costs of $240 on a new item of plant had been recorded as a revenue expense. c. Cash discount of $150 on paying a supplier, JW, had been taken, even though the payment was made outside the time limit. d. Inventory of stationery at the end of the period of $240 had been ignored. e. A purchase of raw materials of $350 had been recorded in the purchases account as $850. f. The purchase returns day book included a sales credit note for $230 which had been entered correctly in the account of the customer concerned, but included with purchase returns in the nominal ledger. Required (a) Prepare journal entries to correct each of the above errors. Narratives are not required.…
Assume that Simple Company had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense
ffect of Doubtful Accounts on Net Income During its first year of operations, Mack’s Plumbing Supply Co. had sales of $450,000, wrote off $7,200 of accounts as uncollectible using the direct write-off method, and reported net income of $49,500. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.$
Barga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $61,000; and Year 2, $98,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place. Year 1: Year 2: Choose Numerator: Accounts receivable $ $ Days' Sales Uncollected 1 Choose Denominator: X /Net sales X 61,000 x 98,000 x 663,000/ $ 749,000/ $
At the end of the current year, the accounts receivable account has a debit balance of $1,117,000 and sales for the year total $12,670,000. a. The allowance account before adjustment has a credit balance of $15,100. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $15,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $48,300. c. The allowance account before adjustment has a debit balance of $6,400. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $6,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. b. $ C. $ d. $
At the end of the current year, the accounts receivable account has a debit balance of $881,000 and sales for the year total $9,980,000. a. The allowance account before adjustment has a credit balance of $11,900. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $11,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $38,100. C. The allowance account before adjustment has a debit balance of $7,200. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Providing for Doubtful Accounts at the end of the year, the accounts receivable account has a debit balance of $851,000 and sales for the year total $9,650,000. A.the allowance account before adjustment has a credit balance of $11,500. Bad debt expense is estimated at 1/2 of 1% of sales. B.the allowance account before adjustment has a credit balance of $11,500. An agent of the accounts in the customer's Ledger indicates estimated doubtful accounts of $36,800. C. The allowance account before adjustment has a debit balance of $5,200. Bad Debt is estimated at 3/4 of 1% of sales. D.the allowance account before adjustment has a debit balance of $5,200. An agent of the accounts in the customer Ledger indicates estimated doubtful accounts of $43,200. determine the amount of the adjusted entry to provide for doubtful accounts under each of the assumptions(a through d) listed above. A.$ ____ B.$ _____ C.$ _____ D.$ _______
Assume Simple Co. had credit sales of $254,000 and cost of goods sold of $154,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $290. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
At the end of the current year, the accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000. The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at ½ of 1% of sales. The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000. The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at ¾ of 1% of sales. The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.