ACC244-Financial Accounting FALL 2019 Ch6 - Graded Homework Assignment ACCOUNTS RECEIVABLE: In 2018, Viking Corp. began the year with the following balances in its accounts: Accounts Receivable Allowance for Doubtful Accounts $500,000 $21,000 During 2018, Viking sold $3,250,000 on account and collected $2.935,000 in cash from previously billed accounts, Viking also wrote off $17,000 of accounts deemed uncollectible. Answer the following questions: 1) Compute the ending balance in the accounts before any adjustment to true-up the allowance account): Accounts Receivable Allowance for Doubtful Accounts 2) If Viking Corp uses the percentage-of-sales approach to estimating its bad debts, what would be the Bad Debt Expense that would be recorded for 2018 if it historically experiences approximately 1.5% write-offs annually? increase/decrease (circle one) 3) Assume instead that Viking Corp uses the percentage-of-receivables method to estimate its uncollectible accounts. Viking's aging shows the following: X uncollectible Current 1-30 days past due 31-60 days past due 61 days past due Amount 515,000 175,800 81,700 25,500 10% 30% What would be the amount of Bad Debt Expense that would be recorded in the adjustment for the Allowance at 12/31/18? increase/decrease (circle one) INTERNAL CONTROL Usted below are four procedures followed by Rodgers Inc 1. The employees that signs the company checks also records the cash disbursements in the accounting records 2. A time clock with time tickets are used for recording time worked by employees. 3. Cash in excess of $100 is stored in locked safe in the stockroom until it can be deposited in the bank 4. The company does not have a vacation policy for its employees. Indicate whether each procedure is an example of good internal control or weak internal control for Rodgers Inc. indicate which internal control principle is either being followed (if good) or violated of weak) # I Good or Weak? Related Internal Control Principle