Allowance for doubtful debts: Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts . The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. This provision is called as allowance for doubtful debts. Receivables: Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually company all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts. The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. Therefore the bad debts for the year is adjusted by transferring the amount to allowance for bad debts account. In fiscal yearend 2015 or in 2016 did Whirlpool considered that a larger percentage of the gross accounts receivable will be uncollectible?
Allowance for doubtful debts: Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts . The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. This provision is called as allowance for doubtful debts. Receivables: Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually company all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts. The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. Therefore the bad debts for the year is adjusted by transferring the amount to allowance for bad debts account. In fiscal yearend 2015 or in 2016 did Whirlpool considered that a larger percentage of the gross accounts receivable will be uncollectible?
Solution Summary: The author explains that companies make credit sales to improve their business and expand their customer base. The company estimates that a portion of its receivables will become bad debts and create provisions.
Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.
Chapter 5, Problem 95.3C
To determine
Concept introduction:
Allowance for doubtful debts:
Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts. The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. This provision is called as allowance for doubtful debts.
Receivables:
Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually company all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts. The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. Therefore the bad debts for the year is adjusted by transferring the amount to allowance for bad debts account.
In fiscal yearend 2015 or in 2016 did Whirlpool considered that a larger percentage of the gross accounts receivable will be uncollectible?
Your firm has been engaged to examine the financial statements of Teal Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information.
Teal CorporationBalance SheetDecember 31, 2020
Assets
Liabilities
Current assets
$1,888,000
Current liabilities
$970,000
Other assets
5,114,480
Long-term liabilities
1,471,000
Stockholders’ equity
4,561,480
$7,002,480
$7,002,480
An analysis of current assets discloses the following.
Cash (restricted in the amount of $301,000 for plant expansion)
$582,000
Investments in land
185,000
Accounts receivable less allowance of $29,000
479,000
Inventories (LIFO flow assumption)
642,000
$1,888,000
Other assets include:
Prepaid expenses
$62,000
Plant and…
Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the following information.
Almaden CorporationBalance SheetDecember 31, 2020
Assets
Liabilities
Current assets
$1,881,100
Current liabilities
$ 962,400
Other assets
5,171,400
Long-term liabilities
1,439,500
Stockholders' equity
4,650,600
$7,052,500
$7,052,500
An analysis of current assets discloses the following.
Cash (restricted in the amount of $300,000 for plant expansion)
$ 571,000
Investments in land
185,000
Accounts receivable less allowance of $30,000
480,000
Inventories (LIFO flow assumption)
645,100
$1,881,100
Other assets include:
Prepaid expenses
$ 62,400
Plant and equipment less accumulated depreciation of…
https://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf
Financial Reporting Analysis: Use Republic Bank Limited Annual Report 2022 to answer the
Questions.
a) Evaluate the company’s latest annual financial statements (balance sheet,
income statement, and cash flow statement) and comment on the company's
financial performance and position. In your response, use the requirements of
IAS 1 as a guide.
b) Identify and discuss key accounting principles and standards applied in the
company’s financial reporting process indicating their reasons for choosing these
and how they were applied. Comment briefly on the appropriateness of the
choices made given the company’s industry, location and type (e.g. MNC,
regional conglomerate, etc.)
c) Critically analyze any significant accounting policies and estimates disclosed in
the notes to the financial statements. In your answer, indicate whether the
company complied with the accounting standards and conventions.
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