Erie wath tre folowing elormation before any adyuriment. company's stock. This has cauted Finie many ileepless nights. Bequired: 4. Ey how much would total assits and erpenses be misataned uning the is andore? Cemplete this evestien by entering your answers in the tabs belew. Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the company's accounting manager provides Einie with the following information, belore any adjustment. In the previous yoac, Sleep Tight Bedding reported operating income (after adjustment) of $278,000. Ernie knows that it's important to report an upward trend in earnings. This is important not only for Ernie's compensation and employment, but also. for the company's stock price. If investors see a decline in earnings, the stock price could drop significantly, and Ernie owns a large amount of the company's stock. This has caused Emie many sleepless nights. Required: 1. Record the adjusting entry for uncollectible accounts using the accounting manager's estimate of 9 of accounts receivable. 2a. After the adjusting entry is recorded in requiremont t, what is the revised amount of operating income? 2-b. Does operating income increase or docrease compared to the previous yoar? 3. Ernie instructs the accounting mansger to record the adjusting entry for uncollectible accounts using 4% rather than 9% of accounts receivable. After this adjustment, does operating income increase or decrease compared to the previous year? 4. Ey how much would total assets and expenses be misstated using the 4% amount? Complete this question by entering your answers in the tabs below. Does aperating income increase or decrease compared to the previous year? Erve Usskaw is the superving manbger of Slecp Tight Bedding. At the end of the yeac, the compeny's accounting manoger provides frive with the following informstion, betore aty adjustiment. steck price. If investors see a dectine in earnings, the stock price could drop sighideantly, and Emie owns a lerge amount of the combanys stock. This has eaused Emie many sieepless right. Aequied: t. Receed the sdjusting enty for uncollectble accounts using the accounting mansoers estimate of 9N of accounts receivable. 2-a. Aher the adjustro entry is recorded in reaccourement t. What is the revised amount of opesating inceme? 2-b. Does operating income increase or decreste compared to the previous year? recelvable. Afier this sdjusthent, does operating income increase or docrease combared to the previous year? 4. Ey how rueh would total atiets and expentes be mistitate using the 4x mount? Cemplete Bhis eqestien by estering veur anewers in the tatrs belew. Ernie Upshew is the supervising manager of Sleep nght Bedding. At the end of the yeac, the company's accounting manager provides Einie with the following information, before any sojustment. In the prevbous yeak, Sleep Tight Bedding reported operating income (after adjustment) of $273,000. Ernie knows that irs important to report an upward trend in earnings. This is important not only for Ernie's compensation and employment, but also for the company's stock price. If investors see a docline in eamings, the stock price could drop significantly, and Ernie owns a large amount of the companylis stock. This has caused Emie mamy sleepless nights. Required: 2. Record the adjusting enty for uncoliectible accounts using the accounting manager's estimate of 9x of accounts receivable. 2-a. After the adfusting enty s recorded in requirement t, what is the revised amount of operating income? 2.b. Does operating income increase or decresse compared to the previous year? 2. Erne instructs the accounting mansoer to record the adjusting entry for uncollectoble accounts using 4 rather than 9% of accounts recelvable. Afer this adjustment, does operating income increase or decrease compared to the previous year? 4. Dy how much would total assets and expenses be misstated using the 42 amount? Cemplete this auestien by enteriag yeur answers in the tabs below. By how much wivild tetal assets and expenses be mibvated using the 4% amount
