INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 20, Problem 20.23E
(a)
To determine
Error correction:
Error correction is an adjustment to previously issued financial statements. It is not considered as an accounting change.
To identify: The error made by Corporation WB in the transaction of office supplies expense on December 31, 2017.
(b)
To determine
To identify: The error made by Importers M in the transaction of prepayment of tenant for 2018 rent of a building on the last day of 2017.
(c)
To determine
To identify: The error made by Corporation DL in the transaction of accrue interest at the end of 2017.
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Students have asked these similar questions
Problem 10-22 (AICPA Adapted)
Black Company reported accounta payable on December 1
2021 at P4,600,000 before any necessary yoar-end adjustment
rolating to the following transactions:
On December 27, 2021, Black Company wrote and recorded
checks to creditors totaling P2,000,000 causing an overdrat
of P500,000 in Black Company's bank account on December
31, 2021. The checks were mniled out on January 10, 2022
On December 28, 2021, Black Company purchaied and
received goods for P750,000 terms 2/10, n /30.
Black Company, records purchases and accounts payable at
net amount. The invoice was recorded and paid January 5,
2022
Goods shipped FOB destination, 5/10, n/30 on December
20, 2021 from a vendor to Black Company were received
January 15, 2022. The invoice cost was P325,000.
On December 31, 2021, what amount should be reported as
accounts payable?
a. 7,575,000
b. 7,250,000
c. 7.235,000
d. 7,553,500
P 7-4
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt
expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the
following:
Uncollectible
accounts
• LO7-5, LO7-6
Current assets:
$432,000
Receivables, net of allowance for uncollectible accounts of $30,000
During 2021, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in
accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was writ-
ten off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following:
Percentage of Year-End
Receivables in Group
Percent
Age Group
Uncollectible
0-60 days
65%
4%
61-90 days
91-120 days
Over 120 days
15
10
25
40
Required:
1. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previ-
ously written off.
2. Prepare the year-end adjusting entry…
48
Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method.
a.
Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000
b.
Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000
c.
Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000
d.
Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000
Clear my choice
Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove…
Chapter 20 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
Ch. 20 - Prob. 20.1QCh. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3QCh. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8QCh. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...
Ch. 20 - Prob. 20.11QCh. 20 - Describe the process of correcting an error when...Ch. 20 - Prob. 20.13QCh. 20 - If it is discovered that an extraordinary repair...Ch. 20 - Prob. 20.15QCh. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; average cost method...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 Irwin, Inc.,...Ch. 20 - Prob. 20.5BECh. 20 - Book royalties LO204 Three programmers at Feenix...Ch. 20 - Warranty expense LO204 In 2017, Quapau Products...Ch. 20 - Change in estimate; useful life of patent LO204...Ch. 20 - Prob. 20.9BECh. 20 - Error correction LO206 In 2018, internal auditors...Ch. 20 - Prob. 20.11BECh. 20 - Error correction LO206 In 2018, the internal...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change from the treasury stock method to retired...Ch. 20 - Change in principle; change to the equity method ...Ch. 20 - Prob. 20.5ECh. 20 - FASB codification research LO202 Access the FASB...Ch. 20 - Change in principle; change in inventory cost...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 For...Ch. 20 - Change in depreciation methods LO203 The Canliss...Ch. 20 - Book royalties LO204 Dreighton Engineering Group...Ch. 20 - Loss contingency LO204 The Commonwealth of...Ch. 20 - Warranty expense LO204 Woodmier Lawn Products...Ch. 20 - Prob. 20.15ECh. 20 - Accounting change LO204 The Peridot Company...Ch. 20 - Change in estimate; useful life and residual value...Ch. 20 - Classifying accounting changes LO201 through...Ch. 20 - Error correction; inventory error LO206 During...Ch. 20 - Error corrections; investment LO206 Required: 1....Ch. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Inventory errors LO206 Indicate with the...Ch. 20 - Classifying accounting changes and errors LO201...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - P 20-2 Change in principle; change in method of...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - Change in inventory methods LO202 The Rockwell...Ch. 20 - Change in inventory methods LO202 Fantasy...Ch. 20 - Change in principle; change in depreciation...Ch. 20 - Depletion; change in estimate LO204 In 2018, the...Ch. 20 - Accounting changes; six situations LO201, LO203,...Ch. 20 - Prob. 20.9PCh. 20 - Inventory errors LO206 You have been hired as the...Ch. 20 - Error correction; change in depreciation method ...Ch. 20 - Accounting changes and error correction; seven...Ch. 20 - Prob. 20.13PCh. 20 - Prob. 20.14PCh. 20 - Prob. 20.15PCh. 20 - Prob. 20.16PCh. 20 - Prob. 20.17PCh. 20 - Integrating Case 201 Change to dollar-value LIFO ...Ch. 20 - Prob. 20.2BYPCh. 20 - Prob. 20.3BYPCh. 20 - Analysis Case 204 Change in inventory methods;...Ch. 20 - Prob. 20.5BYPCh. 20 - Prob. 20.6BYPCh. 20 - Analysis Case 208 Various changes LO201 through...Ch. 20 - Analysis Case 209 Various changes LO201 through...Ch. 20 - Prob. 20.10BYPCh. 20 - Prob. 20.11BYPCh. 20 - Prob. 20.12BYPCh. 20 - Prob. 1CCTC
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