Ben Corp grants its customers 30 dyas credit. The company uses the allowance methods for its uncollectible accounts receiveable. During the year, a monthly bad debt accrual is made by multiplying 3.5% times the amount of credit sales for the…
Identify and discuss accreditation for Skilled Nursing Facilities and Continuing Care Retirement Centers. 1. Your understanding of the accreditation process for Skilled Nursing Facilities. 2. Your understanding of the accreditation process for Continuing Care Retirement Centers.
Brad’s company has equipment with a book value of $500 that could be sold today at a 50% discount. Its inventory is valued at $400 and could be sold to a competitor for that amount. The firm has $50 in…
The accounts and their amounts for Belgrave Co. at December 31, 2012 are listed below. 1) Prepare the income statement, 2)the balance sheet, 3)the closing entries, and 4)an After-Closing Trial Balance. Cash: $5,300 (dr); A/R: $5,850 (dr); Supplies: $360 (dr);…
The Calvin-dogwood partnership owns inventory that was purchased for 65,000, has a current replacement cost of 64500 and is priced to sell for 95,000. At what amount should the inventory be recorded in the accounts of the new partnership if…
Do you agree that accounts payable confirmation should not be required? What limitations exist for accounts payable confirmation? What alternative audit procedures can be used instead of accounts payable confirmation? What are the pros and cons of these alternative audit…
Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company’s general ledger. This debit could correspond to: A) A $8,000 sale to a customer. B) A payment of $8,000 to a supplier to…
What is the amount of cash collected from customers if Pastina wrote off $1,250 of Accounts Receivable as Uncollectible? A) $121,250 B) $128,250 C) $170,250 D) $145,750 67.
Parr Hardware Store had net credit sales of $6,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was:…
Analysts use the quick ratio (also known as the acid test ratio) and the current ratio. The use of both ratios has become common because a. the acid test is a more severe test of a company’s liquidity b. the…
