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klemol [59]
3 years ago
13

Which of the following statements will an auditor most likely add to the negative from of confirmations of accounts receivable t

o encourage timely consideration by the recipient?
A. "This is not a request for payment; remittances should not be sent to our auditors in the enclosed envelope"
B. "Report any differences on the enclosed statement directly to our auditors; no reply is necessary if this amount agrees with your records"
C. "If you do not report any differences with 15 days, it will be assumed that this statement is correct"
D. "The following invoices have been selected for confirmation and represent amounts that are overdue"
Business
1 answer:
MrRissso [65]3 years ago
7 0

Answer:

The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".

Explanation:

Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.

In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.

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3 years ago
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Novak Corporation amended its pension plan on January 1, 2020, and granted $152,280 of prior service costs to its employees. The
m_a_m_a [10]

Answer:

26762.74

Explanation:

Prior service cost amortization for 2020 can be calculated by first calculating the average time until the employee's retirement. After calculating the average time until retirement we will divide the service cost at that time

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average time until retirment  = 1880/330

average time until retirment = 5.69 years

prior service cost amortization for 2020 = $152,280/5.69

prior service cost amortization for 2020 = $26762.74

3 0
3 years ago
Rodrigo wanted to buy his wife a pearl necklace for her birthday. Murphy's Jewelry had a necklace he liked for $139, but he boug
White raven [17]

Answer:

a framing bias.

Explanation:

given data

necklace he liked = $139

pearl necklace originally = $173.75

sale for = 20% off

reduced the price = $139

solution

  • Rodrigo is subject to readymade bias. This bias refers to how people’s decisions affect situations, words, or settings. Although both stores have the same price, Pearl’s own stores create a relative factor
  • It showed a high base price and a 20% discount, which made Rodrigo feel like he was making a deal, so he was more inclined to buy the necklace and not at the Murphy jewelry store.
6 0
3 years ago
The list price on Boyton's catalog indicated that product A sells for $3,000, with a trade discount of 5%. Boyton sells the good
Alexeev081 [22]

Answer:

B) $2,850

Explanation:

1: Find the discount: $3,000*5% = $150

2: Subtract the discount: $3,000 - $150 = $2,850

4 0
3 years ago
On April ​3, a customer returned $ 900 of merchandise that had been purchased with cash to Cooke Supplies. Cooke​'s cost of the
PIT_PIT [208]

Answer:

The Journal entries are as follows:

(i) Sales revenue A/c  Dr. $900

          To Cash  $900

(To record the correction in sales revenue)

(ii) Merchandise Inventory A/c  Dr. $200

           To Cost of Goods sold  $200

(To record the merchandise returned)

Note:

(1) At the time of sale, the cash would have been debited with the amount of $900 and the sales revenue would have been credited with the amount of $900. Now, the cash of $900 should be credited as it was debited earlier.

(2) The inventory account also credited at the time sale, so it should be debited and the cost of goods sold debited at the time of original sale, so it need to be credited.

4 0
3 years ago
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