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Fastjet Airlines Limited is a low-cost airline. Fastjet commenced operations in November 2017 and is looking to expand both its customer base and destinations.
Fastjet Airlines Limited is a low-cost airline. Fastjet commenced operations in November 2017 and is looking to expand both its customer base and destinations. In conducting your audit, you are unsure how Fastjet will be able to manage its credit issuance and collections. Select information from the company's 2018 and 2019 annual reports is shown below (in thousands of US dollars): sales not past due 0-60 days past due(allowance) more than 60 days(allowance) total trade receivables total allowance year ended 12/31/18 26,117 164 1,111(72 235(28) 1,510 100 year ended 12/31/19 53,759 0 2,975(542) 2,975 542 Required a. Based on the information provided, a list which analytical procedures you can use to determine whether trade receivables and the allowance for doubtful receivables are accurately reported. b. What additional information is needed to conduct more detailed analytical procedures related to receivables and allowance for doubtful accounts? C. What is your conclusion regarding the accuracy of Fastjet's trade receivables and allowance for doubtful receivables as on December 31, 2019?
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a List of analytical procedures Compare the accounts receivables report with the amount given in the balance sheet to identify that the correct amount ...Get Instant Access to Expert-Tailored Solutions
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