Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 28RQSC
a.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
The
b.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
To calculate: Sampling interval.
c.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
The largest value use for a random start.
d.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
To identify: The item included in the sample
e.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
To compute: The probability of selecting each of the following population items
f.
To determine
Introduction: Sampling is the technique of selecting a smaller portion for a large population for the purpose of statistical analysis or research. There are various methods of selecting a sample depend upon the type of analysis or research.
Including fewer logical units than computed sample size determines the final sample size.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On the first day of Year Two, the Richmond Corporation holds accounts receivable of $400,000 and an allowance for doubtful accounts of $23,000 for a net realizable value of $377,000. During the year, credit sales were $450,000 and cash collections amounted to $380,000. In addition, $25,000 in receivables were written off as uncollectible. If 4 percent of ending accounts receivable is estimated as uncollectible, what bad debt expense is reported for Year Two on Richmond’s income statement?
Responses
$19,800
$20,800
$15,200
$21,800
On December 15, the accounts receivable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1,000 uncollected account was written off. What is the net realizable value of accounts receivable immediately after the write-off?
$49,000
$46,000
$44,000
$45,000
From aging its Accounts Receivable, Marlon De Guzman Company estimates that 18,750 of it's accounts will be uncollectible. At this time, Allowance for Doubtful Accounts has an 8,400 credit balance. The adjusting entry is.
A. Debit allowance for doubtful accounts, 18,750; credit accounts receivable, 18,750.
B. Debit doubtful accounts expense, 10,350; credit allowance for doubtful accounts, 10,350
C. Debit doubtful accounts expense, 18,750; credit accounts receivable 18,750
D. Debit allowance for doubtful accounts, 10,350; credit doubtful accounts expense, 10,350
(Which one is correct)
Chapter 8 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 8 - Prob. 1CYBKCh. 8 - Prob. 2CYBKCh. 8 - Prob. 3CYBKCh. 8 - Prob. 4CYBKCh. 8 - Prob. 5CYBKCh. 8 - Prob. 6CYBKCh. 8 - Prob. 7CYBKCh. 8 - Prob. 8CYBKCh. 8 - Prob. 9CYBKCh. 8 - Prob. 10CYBK
Ch. 8 - Prob. 11CYBKCh. 8 - Prob. 12CYBKCh. 8 - Prob. 13CYBKCh. 8 - Prob. 14CYBKCh. 8 - Prob. 15CYBKCh. 8 - Prob. 16CYBKCh. 8 - Prob. 17CYBKCh. 8 - Prob. 18CYBKCh. 8 - Refer to Exhibit 8.6. Assume a 5% risk of...Ch. 8 - Prob. 21CYBKCh. 8 - Prob. 22CYBKCh. 8 - Prob. 23CYBKCh. 8 - Prob. 24CYBKCh. 8 - Prob. 25CYBKCh. 8 - Prob. 26CYBKCh. 8 - Prob. 27CYBKCh. 8 - Prob. 28CYBKCh. 8 - Prob. 29CYBKCh. 8 - Prob. 30CYBKCh. 8 - Prob. 31CYBKCh. 8 - Prob. 32CYBKCh. 8 - Prob. 33CYBKCh. 8 - Prob. 34CYBKCh. 8 - Prob. 35CYBKCh. 8 - Prob. 36CYBKCh. 8 - Prob. 37CYBKCh. 8 - Prob. 38CYBKCh. 8 - Prob. 39CYBKCh. 8 - Prob. 1RQSCCh. 8 - Prob. 3RQSCCh. 8 - Prob. 4RQSCCh. 8 - Prob. 5RQSCCh. 8 - Prob. 6RQSCCh. 8 - Prob. 7RQSCCh. 8 - Prob. 8RQSCCh. 8 - Prob. 9RQSCCh. 8 - Prob. 10RQSCCh. 8 - Prob. 11RQSCCh. 8 - Prob. 12RQSCCh. 8 - Prob. 13RQSCCh. 8 - Prob. 14RQSCCh. 8 - Prob. 15RQSCCh. 8 - Prob. 16RQSCCh. 8 - Prob. 17RQSCCh. 8 - Prob. 18RQSCCh. 8 - Prob. 19RQSCCh. 8 - What is stratification? Distinguish between...Ch. 8 - Prob. 21RQSCCh. 8 - Prob. 22RQSCCh. 8 - Prob. 23RQSCCh. 8 - Prob. 24RQSCCh. 8 - Prob. 25RQSCCh. 8 - Prob. 26RQSCCh. 8 - Prob. 27RQSCCh. 8 - Prob. 28RQSCCh. 8 - Prob. 29RQSCCh. 8 - Prob. 30RQSCCh. 8 - Prob. 31RQSCCh. 8 - Prob. 32RQSCCh. 8 - Prob. 33RQSCCh. 8 - Prob. 36RQSCCh. 8 - Prob. 37RQSC
Knowledge Booster
Similar questions
- Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.arrow_forwardhe credit manager of Montour Fuel has gathered the following information about the company’s accounts receivable and credit losses during the current year: Net credit sales for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000,000 Accounts receivable at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,000 Uncollectible accounts receivable: Actually written off during the year . . . . . . . . . . . . . . . . . . . . . . . . . $96,000 Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule). . . . . . . . . . . . . . . . . . . . . . . . 84,000 180,000 Prepare one journal entry summarizing the recognition of uncollectible accounts expense for the entire year under each of the following independent assumptions: a. Uncollectible accounts expense is estimated at an amount equal to 3.5 percent of net credit sales. b. Uncollectible accounts expense is recognized by adjusting the balance in the Allowance…arrow_forwardThe following information relevant to accounts receivable is presented for Dharma Initiative (in thousands of dollars). Calculate the accounts receivable turnover ratio, and the days' sales outstanding ratio for the years 2022 and 2023. Do not enter dollar signs or commas in the input boxes.For accounts receivable turnover, round to one decimal place.For days' sales outstanding, round to the nearest whole number. 2023 2022 2021 Accounts Receivable $476 $488 $437 Allowance for Doubtful Accounts $25 $20 $21 Net Credit Sales $2,574 $3,552 $3,654 Accounts Receivable Turnover (in number of times) Answer Answer Days' Sales Outstanding (in days) Answer Answer On January 2, 2023, Dharma Initiative agreed to sell $240,000 of its accounts receivable with a 5% fee paid to the factor. Prepare the journal entry to record the factoring of accounts receivable. Do not enter dollar signs or commas in the input boxes.Enter the debit accounts in alphabetical order. Date Account…arrow_forward
- you are given the following data in connection with your audit of the cancer company: balance per bank statement, november 30, 3,600,000; deposit in transit, 800,000; outstanding checks, 1,200,000; bank credit recorded in error, 200,000; data per bank statement for the month of december follow: december deposits, including note collected of p1,000,000 for cancer, 5,500,000; december disbursements, including nsf customer check of p350,000 and service charge p50,000,4,400,000. all items that were outstanding on november 30 cleared through the bank in december including the bank credit. in addition, checks amounting to p500,000 were outstanding and deposits of p700,000 were in transit on december 31. what is the amount of cash receipts per books in december? *arrow_forwardOn January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $76,000 and $4,000, respectively. During Year 2, Kincaid reported $215,000 of credit sales, wrote off $2,100 of receivables as uncollectible, and collected cash from receivables amounting to $271,100. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. What is the net realizable value of receivables that will be reported on Kincaid's Year 2 balance sheet?arrow_forwardAt the end of the current year, Accounts Receivable has a balance of $700,000; the Allowance for Doubtful Accounts has a debit balance of $5,500; and credit sales for the year total $7,500,000 and cash sales totaled $1,000,000. The company estimated, based on aging of receivables, that $36,000 of receivables will be uncollectible.. Determine (a) the amount of the adjusting entry for bad debt expense and (b) the net realizable value of accounts receivable.arrow_forward
- Pachel Corporation reports the following information pertaining to its accounts receivable: Days Past Due Current 1–30 31–60 61–90 Over 90 $ 60,000 $ 40,000 $ 25,000 $ 12,000 $ 2,000 The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above: Current receivables outstanding 2 % Receivables 1–30 days past due 4 Receivables 31–60 days past due 16 Receivables 61–90 days past due 40 Receivables over 90 days past due 90 The company uses a statement of financial position approach to estimate credit losses. a. Record the company's impairment loss of receivable, assuming it has a $1,400 credit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.) General Journal Debit Credit (Click to…arrow_forwardA local bank reviewed its credit-card policy with the intention of recalling some of its credit cards. In the past, approximately 5% of cardholders defaulted, leaving the bank unable to collect the outstanding balance. Hence, management established a prior probability of 0.05 that any particular cardholder will default. The bank also found that the probability of missing a monthly payment is 0.20 for customers who do not default. Of course, the probability of missing a monthly payment for those who default is 1. Given that a customer missed a monthly payment, compute the posterior probability that the customer will default. The bank would like to recall its credit card if the probability that a customer will default is greater than 0.20. Should the bank recall its credit card if the customer misses a monthly payment? Why or why not?arrow_forwardFlorence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a debit balance of $500,000 in the Accounts Receivable account with Credit Sales of $1,500,000 for the year. Management estimates 1.5% of credit sales will become uncollectible. What is the amount of estimated bad debts expense?arrow_forward
- At the end of the current year, the accounts receivable account has a debit balance of $792,000 and sales for the year total $8,980,000. The allowance account before adjustment has a credit balance of $10,700. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a credit balance of $10,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $34,200. The allowance account before adjustment has a debit balance of $5,200. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $5,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $43,200. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $fill in the blank 1 b. $fill in the blank 2 c. $fill in the blank 3 darrow_forwardAt the end of the current year, the accounts receivable account has a debit balance of $844,000 and sales for the year total $9,560,000. The allowance account before adjustment has a credit balance of $11,400. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $11,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $36,500. The allowance account before adjustment has a debit balance of $6,700. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $6,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $55,600. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. fill in the blank b. fill in the blank c. fill in the blank d. fill in the blankarrow_forwardAt the end of the fiscal year, accounts receivable has a balance of $100000 and allowance for doubtful accounts has a balance of $ 7000. the expected net realizable value of the accounts receivable is?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College