Question
WorldBiz operates divisions around the world. Its European divisionEuroBiz (EB)has recently reported the following information to you at WorldBizs head office. You are trying to
WorldBiz operates divisions around the world. Its European divisionEuroBiz (EB)has recently reported the following information to you at WorldBizs head office. You are trying to decide whether to direct your internal audit staff to investigate more closely. From the Financial Statement Notes 2015 2014 2013 Accounts Receivable (gross) $ 125,000 $ 67,000 $ 47,000 Allowance for Doubtful Accounts (5,000 ) (6,700 ) (4,700 ) Accounts Receivable, Net 120,000 60,300 42,300 Other Information Gathered Net Sales Revenue $ 775,000 $ 650,000 $ 560,000 Accounts Receivable Write-offs 9,450 8,400 6,800 Bad Debt Expense 7,750 10,400 8,960 Sales Discounts (2/10, n/30) 3,700 9,700 5,700
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