Please help me Required information[The following information applies to the questions displayed below]Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During2021, the company provides services of $405,000 on account of this amount, $55.000 remains uncollected at the end ofthe year. An aging schedule as of December 31, 2021, is provided belowAge GroupNot yet due0-30 days past due31-40 days past doeMore than 60 days past dueTotalAmountReceivable$35,00010,5007,5002.000$35,000Journal entry worksheetEatinatedPercentUscollectible416112030%3. On April 3, 2022, a customer's account balance of $450 is written off as uncollectible. Record the write-off (f no entry is requiredfor a particular transaction/event, select "No Journal Entry Required" in the first account field.) 3. On April 3, 2022, a customer's account balance of $450 is written off as uncollectible. Record the write-off. Of no entry is requiredfor a particular transaction/event, select "No Journal Entry Required" in the first account field.)View transaction listJournal entry worksheetRecord write off of actual bad debts.Note: Enter debit before creditsDuteApr 03, 2022General JournalAllowance for Uncollectible AccountsAccounts Receivable-DubiCreat

The allowance for uncollectible accounts has the normal credit balance. The accounts written off…

Answered: Required information (The following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 13E

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TWENTYFIRST Corporation a manufacturer of cleaning products is preparing annual financial statements at December 31, 2020. Because of a recently proven health hazard in one of its cleaning products, the PH government has clearly indicated its intention of having TWENTYFIRST recall all can of this paint sold in the last three months. The management of TWENTYFIRTS estimates that this recall would cost P5,800,000. What accounting recognition, if any, should be accorded this situation? Group of answer choices Expense of P5,800,000 and liability of P5,800,000 Note disclosure only Expense of P5,800,000 and retained earnings restrictions of P5,800,000 No recognition
Mama Mo Na Tita Ko Corporation, a manufacturer of cleaning products, is preparing annual financial statements at December 31, 2022. Because of a recently proven health hazard in one of its cleaning products, the government has clearly indicated its intention of having the company recall all cans of this paint sold in the last three months. The management estimates that this recall would cost P800,000. What accounting recognition, if any, should be accorded this situation? Statement 1: Recognize expense of P800,000 and liability of P5,800,000. Statement 2: Disclosed P800,000 as contingent liability in the notes to financial statement. Both statements are correct Both statements are incorrect Only statement 2 is correct Only statement 1 is correct
ABC Corporation a manufacturer of cleaning products is preparing annual financial statements at December 31, 2020. Because of a recently proven health hazard in one of its cleaning products, the PH government has clearly indicated its intention of having ABC recall all can of this paint sold in the last three months. The management of ABC estimates that this recall would cost P5,800,000. What accounting recognition, if any, should be accorded this situation?
. TITO Co. requires advance payments with special orders for an equipment constructed to customer specifications. These advances are nonrefundable. Information for2020 is as follows: Customer advances-balance 1/1/20x0 P124,000 Advances received with orders in 20x0 300,000 Advances applied to orders shipped in 20x0 50,000 Advances applicable to orders canceled in 20x0 30,000 In Tito's December 31, 2020, balance sheet, what amount should be reported as a current liability for advances from customer? a. 0 b. 88,000 c. 74,000 d. 148,000
6 Mama Mo Na Tita Ko Corporation, a manufacturer of cleaning products, is preparing annual financial statements at December 31, 2022. Because of a recently proven health hazard in one of its cleaning products, the government has clearly indicated its intention of having the company recall all cans of this paint sold in the last three months. The management estimates that this recall would cost P800,000. What accounting recognition, if any, should be accorded this situation? Statement 1: Recognize expense of P800,000 and liability of P5,800,000. Statement 2: Disclosed P800,000 as contingent liability in the notes to financial statement. Group of answer choices Only statement 2 is correct Only statement 1 is correct Both statements are correct Both statements are incorrect
Ciclista Inc., a bicycle manufacturer, is preparing its financial statements for December 31, 2020. The company has identified the following legal situations that can be classified as contingencies. 1. The company has discovered that a type of bicycle that they began to manufacture and sell in 2020 has some defects in the handlebars. The company has sent a statement to newspapers and magazines offering to replace the handlebars. The company estimates a cost of $ 400,000 for these repairs (This is recorded as a separate entry from Expense). No legal charges have been filed for damages caused by the defect. The company considers that there are 2. The company maintains an incinerator in the back of a warehouse that is used to burn cardboard boxes received in inventory shipments. In September 2020, the state environmental protection agency filed a lawsuit against the company for contamination. The company hopes to stop using the incinerator and start recycling. However, his lawyers…
Authors Academic Press faces three potential contingency situations, described below. Authors’ fiscal year ends December 31, 2021.Required:Determine the appropriate means of reporting each situation for the year ended December 31, 2021, and record any necessary entries. Explain your reasoning.1. In August 2021, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $1.2 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $300,000 to $600,000.2. A suit for breach of contract seeking damages of $3 million was filed by an author on October 4, 2021. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1.5 million and $2.25 million. No amount within this range is a better estimate of potential damages than any other amount.3. Authors is the plaintiff in…
Janek received a large workers' compensaiton elaim of 590,000 in the third quarter for an injury oceuring in the third quarter. How should fanek account for the tramsaction in is interim financial report? A) Recognize $90,000 in the third quarter B) Recognize S22,500 ratably over the four quarters of the year C) Recognize S30,000 for each of the finst three quarters D) Disclose the S90,000 in the quarter and recognize it a year end
Farina Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable Data for the year are: Customer advances 6,800,000 Advances received with orders in 2021 9,000,000 Advances applied to orders shipped in 2021 8,700,000 Advances applicable to orders canceled in 2021 2,600,000 The December 31, 2021 balance sheet should report current liability for advances at? A.) 4,500,000 B.) 4,400,000 C.) 7,100,000 D.) 6,400,000
Coronado Industries, a manufacturer of household paints, is preparing annual financial statements at December 31, 2020. Because of a recently proven health hazard in one of its paints, the government has clearly indicated its intention of having Coronado recall all cans of this paint sold in the last six months. The management of Coronado estimates that this recall would cost $ 810000. What accounting recognition, if any, should be accorded this situation? Appropriation of retained earnings of $ 810000 Operating expense of $ 810000 and liability of $ 810000 No recognition Note disclosure only
Authors Academic Press faces three potential contingency situations, described below. Authors’ fiscal year ends December 31, 2021. In August 2021, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $1.14 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $285,000 to $570,000. A suit for breach of contract seeking damages of $2,700,000 was filed by an author on October 4, 2021. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1.35 million and $2.025 million. No amount within this range is a better estimate of potential damages than any other amount. Authors is the plaintiff in a pending court case. Its lawyers believe it is probable that Authors will be awarded damages of $2.7 million. Required: Determine the appropriate means…
CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January, $15,00 in February, and $16,000 in March 2021 before discontinuing further gift card sales. During 2021, gift cardredemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be “broken” (not redeemable) 10 months after sale. Required:1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?

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