Please answer the following question :

Question #1

The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements.

1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register.
2. The store manager personally approves all payments before she signs and issues checks.
3. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register.
4. After payment, bills are "filed" in a paid invoice folder.
5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner.

Required:

a. For each procedure, please explain the weakness in internal control.

b.For each weakness, please suggest a change in the procedure that will result in good internal control.

Question #2

At December 31, 2019, Suisse Imports reported this information on its balance sheet.

Accounts receivable $600,000

Less: Allowance for doubtful account 37,000

During 2020`, the company had the following transactions related to receivables.

1. Sales on account $2,500,000
2. Sales returns & allowances 50,000
3. Collections of accounts receivable 2,200,000
4. Write-offs of accounts receivable deemed uncollectible 41,000
5. Recovery of bad debts previously written-off as uncollectible 15,000

Required:

a. Please prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

b. Please prepare the journal entry to record bad debt expense for 2017, assuming that aging the account receivable indicates that estimated bad debts are $46,000.

c. Please compute the accounts receivable turnover and average collection period.

Question #3

Godfreid Company had accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. The company considered changing its method for bad debt calculation from allowance method to percentage of accounts receivable. At March 31, 2020, there was a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company's estimates of bad debts are as shown below.

Age of accounts Balance, March 31 Estimated percentage uncollectible Current $65,000 $15,000 2% 1-30 days past due 12,900 3,000 5% 31 90 days past clue 10,100 2,400 30% Over 9003315 past due 1E 50% SESSION 4: ACCOUNTING FOR CASH AND RECEIVABLES PRACTICE SET Question #1 The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. 3. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. 4. After payment, bills are "filed" in a paid invoice folder. 5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. Reguired: a. For each procedure, explain the weakness in internal control. b. For each weakness, suggest a change in the procedure that will result in good internal control. Question #2 At December 31, 2019, Suisse imports reported this information on its balance sheet. Accounts receivable $600,000 Less: Allowance for doubtful account 37,000 During 2020', the company had the following transactions related to receivables. 1. Sales on account $2,500,000 2. Sales returns 8: allowances 50,000 3. Collections of accounts receivable 2,200,000 4. Write-offs of accounts receivable deemed uncollectible 41,000 5. Recovery of bad debts previously written-off as uncollectible 15,000 Required: a. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. b. Prepare the journal entry to record bad debt expense for 2017, assuming that aging the account receivable indicates that estimated bad debts are $46,000. c. Compute the accounts receivable turnover and average collection period. Question #3 Godfreid Company had accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. The company considered changing its method for bad debt calculation from allowance method to percentage of accounts receivable. At March 31, 2020, there was a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company's estimates of bad debts are as shown below. Age of accounts Balance, March 31 Estimated percentage uncollectible 2020 2019 Current $65,000 $75,000 2% 1-30 days past due 12,900 8,000 5% 31 -90 days past due 10,100 2,400 30% Over 90days past due 7,400 1,100 50% $95,400 $86,500 Required a. Determine the total estimated uncollectibles. b. Prepare the adjusting entry at March 31, 2020 to record bad debt expense. c. Discuss the implications of the changes in the aging schedule from 2019 to 2020