Answer:
The Journal Entry and their narrations is shown below:-
Explanation:
The Journal entry is shown below:-
a. 1.Accounts Receivable Dr, $3,300
To Sales $3,300
(Being sales is recorded)
Cash Dr, $3,234
Sales Discount Dr, $66
(3,300 × 2%)
To Accounts Receivable $3,300
(Being Payment received is recorded)
2. Accounts Receivable Dr, $3,234
=(3,300 × 0.98)
To Sales $3,234
(Being sales is recorded)
Cash Dr, $3,234
To Accounts Receivable $3,234
(Being payment received is recorded)
b. Cash Dr, $3,300
To Accounts Receivable $3,234
To Sales Discounts Forfeited 66
(Being payment received is recorded)
A business operated by state legally...... is called corporation
Answer:
1. When searching for unrecorded liabilities, the auditors consider transactions recorded <u>after</u> year end.
<em>Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period. </em>
2. Accounts payable <u>confirmation</u> can be mailed to vendors from whom substantial purchases have been made.
<em>As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation. </em>
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider <u>ratios</u>.
<em>Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable. </em>
4. When auditors find unrecorded liabilities, before adjusting they must consider <u>materiality</u>.
<em>
They must consider if the adjustment is material or significant enough to record. </em>
5 Auditiors need to consider <u>shipping terms</u> terms for determining ownership and whether a liability should be recorded.
<em>Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods. </em>
Answer:
The net realizable value of Accounts Receivable = 1,985,538
Explanation:
The journal entry will be: Allowance for Uncollectible Accounts (Debit - Decreased) 6,000 and Accounts Receivable (Credit - Decreased) 6,000.
After the journal entry the credit balance in the Allowance for Uncollectible Accounts will be: 2,005,000 - 6000 = 1,999,000, and the debit balance in Allowance for Uncollectible Accounts will be: 19,462 - 6,000 = 13,462.
Then net realizable value of Accounts Receivable will be: 1,999,000 - 13,462 = 1,985,538.
