Answer:
- 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.
Accounts Rec T-Account
$ 306.673 Debit
$ 290.750 Credit
$ 7.059 Credit
$ 8.864 Debit Balance
Allowance for Doubtful Accounts T-Account
$ 7.059 Debit
$ 4.775 Credit
$ 2.284 Debit Balance
- 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.
$ 4.775 Dr Bad Debt Expense
- 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.
$ 2.284 Dr (Debit) Allowance for Uncollectible Accounts
$ 8.864 Dr (Debit) Accounts Receivable
Explanation:
Dr Accounts Receivable $ 306.673
Cash $ 290.750
Cr Accounts Receivable $ 290.750
Dr Allowance for Uncollectible Accounts $ 7.059
Cr Accounts Receivable $ 7.059
- Bad debt expense adjustment
Dr Bad Debt Expense $ 4.775
Cr Allowance for Uncollectible Accounts $ 4.775
- 1-b. Complete the amounts related to Accounts Receivable and
Bad Debt Expense that would be reported on the INCOME STATEMENT for the current year
Dr Bad Debt Expense $ 4.775
- 1-c. Complete the amounts related to Accounts Receivable and
Bad Debt Expense that would be reported on the BALANCE SHEET for the current year.
Dr Allowance for Uncollectible Accounts $ 2.284
Dr Accounts Receivable $ 8.864
Answer:
a. Briefly discuss what is meant by audit risk, inherent risk and control risk.
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
Audit Risk = Inherent Risk x Control Risk x Detection Risk
Auditors will want their overall audit risk to be at an acceptable level. Inappropriate opinion will result in damages / costs
Inherent risk is the susceptibility of an assertion to a misstatement that could be material individually or when aggregated with other misstatements, assuming there were no related internal controls.
Control risk is the risk that a material misstatement, that could occur in an assertion and that could be material will not be prevented or detected and corrected on a timely basis by the entity's internal control.
b. What level of detection risk is implicit in this problem?
Detection risk is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement
In this case the detection risk given is 0.41.
Answer:
325 units per month
Explanation:
Cumulative demand for next four months:
= 200 + 400 + 250 + 350
= 1,200
Total production requirement
:
= Cumulative demand for next four months - Beginning inventory + Ending inventory
= 1,200 - 0 + 100
= 1,300
At level strategy, monthly production rate will be uniformly.
Therefore,
the monthly production rate will be as follows:
= 1,300 ÷ 4
= 325 units per month
I think the correct answer would be A. The process that you can use to save an audio recording onto a recordable CD would be compressing. It is a process which allows us to share and to store files in systems. In order to compress audio files to a CD, a software or program should be used to be able to compress correctly depending on what type of files can be transferred to the CD.
Answer:
Projected dividend is 15.
Explanation:
In order to calculate projected annual dividend for the coming year, we simply multiply stock price with projected dividend growth rate and we get dividend for the coming year equal to 15.
