Question
Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $28,500 (of which 40% are credit
Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $28,500 (of which 40% are credit sales still outstanding) Sales returns and Allowances $1,000 Miscellaneous Receivables $1,212 Allowance for Doubtful Accounts $1,502 Long term Receivables $9,014 Advances to Shareholders and Directors $4,266 Notes Receivables $2,903 (Current Portion) Bad Debt Expense is estimated as 4% of credit sales
Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on Decmber 31st?
Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st?
Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st?
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Modern Auditing And Assurance Services
Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson
5th Edition
1742168450, 978-1742168456
