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Prepare the adjusting entry to record its Bad Debts Expense assuming uncollectibles are estimated to be 0.4% of total revenues.
On January 1, 2011, a company pays $77,000 to purchase office furniture with a zero salvage value.
Explain the difference between revenue expenditures and capital expenditures and how both are recorded.
In early January 2011, a company acquires equipment for $3,800. The company estimates this equipment to have a useful life of three years and a salvage value .
A company trades an old Web server for a new one. The cost of the old server is $30,000, and its accumulated depreciation at the time of the trade is $23,400.
Why is the cost of a lump-sum purchase allocated to the individual assets acquired?
Evaluate the level of responsibility of the company in terms of the effectiveness of the response to the security breach.
Credit memos are created when a product is returned. Credit memos reduce A/R by crediting the account.
In adjusting the accounts on December 31, the company estimated that 1% of accounts receivable will be uncollectible.
Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1.
Compute the required balance of the Allowance for Doubtful Accounts at December 31, 2011, using the aging of accounts receivable method.
What reporting is necessary when a business pledges receivables as security for a loan and the loan is still outstanding at the end of the period?
Why do we reconcile the bank statement balance of cash and the depositor's book balance of cash?
Identify the two events that cause a Petty Cash account to be credited in a journal entry.
Why does a company hold cash equivalent assets in addition to cash?
The June 30 bank statement included a $23 debit memorandum for bank services; Cruz has not yet recorded the cost of these services.
What is the change in the number of days' sales uncollected between years 2010 and 2011?
Identify and explain at least two frauds or errors that would be uncovered through a bank reconciliation and that would not be uncovered.
Evaluate Cantu's internal control system and indicate which principles of internal control appear to have been ignored.
Some of Chester Company's cash receipts from customers are received by the company with the regular mail.
Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.
Hawk Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $166 in cash along with receipts .
NetPerks Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $28 in cash along with receipts.
Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company.
In reviewing the bank statement, a $400 check written by Wald Company was mistakenly drawn against Chung's account.