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    Latihan Soal Akm 1

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    hamidah candradewi
    Manilow Corporation has $555,000 in accounts receivable and a $40,000 credit balance in allowance for doubtful accounts before year-end adjustments. Based on an aging schedule, the appropriate balance for allowance for doubtful accounts is determined to be $60,000. Accounts receivable would be presented on the statement of financial position as $555,000 with an allowance for doubtful accounts of $60,000.

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    Latihan Soal Akm 1

    Uploaded by

    hamidah candradewi
    30 views2 pages
    Manilow Corporation has $555,000 in accounts receivable and a $40,000 credit balance in allowance for doubtful accounts before year-end adjustments. Based on an aging schedule, the appropriate balance for allowance for doubtful accounts is determined to be $60,000. Accounts receivable would be presented on the statement of financial position as $555,000 with an allowance for doubtful accounts of $60,000.

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    LATIHAN SOAL AKM 1

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    Manilow Corporation has $555,000 in accounts receivable and a $40,000 credit balance in allowance for doubtful accounts before year-end adjustments. Based on an aging schedule, the appropriate balance for allowance for doubtful accounts is determined to be $60,000. Accounts receivable would be presented on the statement of financial position as $555,000 with an allowance for doubtful accounts of $60,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views2 pages

    Latihan Soal Akm 1

    Uploaded by

    hamidah candradewi
    Manilow Corporation has $555,000 in accounts receivable and a $40,000 credit balance in allowance for doubtful accounts before year-end adjustments. Based on an aging schedule, the appropriate balance for allowance for doubtful accounts is determined to be $60,000. Accounts receivable would be presented on the statement of financial position as $555,000 with an allowance for doubtful accounts of $60,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    1. Manilow Corporation operates in an industry that has a high rate of bad debts.

    Before any year-


    end adjustments, the balance in Manilow's Accounts Receivable was $555,000 and Allowance
    for Doubtful Accounts had a credit balance of $40,000. The year-end balance reported in the
    statement of financial position for Allowance for Doubtful Accounts will be based on the aging
    schedule shown below.

    Instructions
    a. What is the appropriate balance for Allowance for Doubtful Accounts at year-end?
    b. Show how accounts receivable would be presented on the statement of financial
    position!
    2. Duncan SA reports the following financial information before adjustments.

    Instructions
    Prepare the journal entry to record Bad Debt Expense assuming Duncan estimates bad debts at
    (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful
    Accounts had a €1,500 debit balance.
    3. Bohannon SA factors €250,000 of accounts receivable with Winkler Financing, Inc. on a without
    guarantee basis. Winkler Financing will collect the receivables. The receivables records are
    transferred to Winkler Financing on August 15, 2019. Winkler Financing assesses a finance charge
    of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts
    receivable to cover probable adjustments.
    Instructions
    a. What conditions must be met for a transfer of receivables with guarantee to be accounted
    for as a sale?
    b. Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2019,
    for Bohannon to record the sale of receivables.
    4. Bryant Ltd. factors receivables with a carrying amount of £200,000 to Warren Company for
    £190,000 and guarantees all credit losses. Instructions Prepare the appropriate journal entry to
    record this transaction on the books of Bryant Ltd.!
    5. The Cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2019. The bank
    statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash
    records, the following facts were determined.
    a. There were bank service charges for June of $25.
    b. A bank memo stated that Bao Dai's note for $1,200 and interest of $36 had been collected on June
    29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on
    Aguilar's books when Bao Dai's note was sent to the bank for collection.)
    c. Receipts for June 30 for $3,390 were not deposited until July 2.
    d. Checks outstanding on June 30 totaled $2,136.05.
    e. The bank had charged the Aguilar Co.'s account for a customer's uncollectible check amounting to
    $253.20 on June 29.
    f. A customer's check for $90 (payment on account) had been entered as $60 in the cash receipts
    journal by Aguilar on June 15.
    g. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no.
    747 in the amount of $58.20 had been entered as $582. Both checks had been issued to pay for
    purchases of equipment.
    Instructions
    i. Prepare a bank reconciliation dated June 30, 2019, proceeding to a correct cash balance.
    ii. Prepare any entries necessary to make the books correct and complete.

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