On September 1, Zuhoor Muscat Company received RO4,800 in advance from a customer for services to be provided equally over 6 months period starting September. If Zuhoor Muscat Company did not prepare an adjusting entry on December 31 for the above transaction, then: a. Liabilities will be overstated by RO 4,800. Ob Revenues will be understated by RO 3,200. Oc None of the options are correct. Od. Cash will be understated by RO 4,800. O e. Net Income will be understated by RO 4,800.
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- Oregon Ltd's account balances at December 31, 2021, before adjusting entries, include: Accounts receivable: $156,000 Allowance for doubtful accounts: $1,900 All account balances are normal balances. After reviewing the receivables balance, management estimates that $5,000 of the accounts receivable will be uncollectible. The required adjusting entry would include a credit to the allowance account in the amount of: Question 5 options: $1,900 $6,900 $5,000 $3,100DI-TWO Corporation had the following accounts and their balances on December 31 before any adjustments: Sales P5,000,000 Accounts Receivable 600,000 Allowance for doubtful accounts 25,000At the end of 2021, Barker Corporation’s preliminary trial balance indicated a current ratio of 1.2. Management is contemplating paying some of its accounts payable balance before the end of the fiscal year. Determine whether the effect this transaction would increase or decrease the current ratio. Would your answer be the same if the preliminary trial balance indicated a current ratio of 0.8?
- 36. Akito Company uses the statement of financial position approach in estimating uncollectible accounts expense. The entity prepares an adjusting entry to recognize this expense at the end of the year. During the year, the entity wrote off a P100, 000 receivable and made no recovery of previous write-off. After the adjusting entry for the year, the credit balance in the allowance for doubtful accounts was P250, 000 larger than it was on January 1. What amount of uncollectible account expense was recorded for the year?Kappa Inc. reported accounts payable on December 31, 2019 at P 2,200,000 before any necessary year-end adjustments relating to the following transactions: Goods shipped to Kappa under terms FOB Shipping Point on December 22, 2019 was lost in transit. The invoice cost of P 40,000 was not recorded by Kappa. On January 7, 2020 filed a P 40,000 claim against the shipper of the lost goods. On December 27, 2019, a vendor authorized Kappa to return, for full credit, goods shipped and billed at P 70,000 on December 3, 2019. The returned goods were shipped by Kappa on December 28, 2019. AP 70,000 credit memo was received and recorded by Kappa on January 5, 2020. On December 31, 2019, Kappa has a P 500,000 debit balance in accounts payable to Sigma Inc., a supplier, resulting from a P 500,000 advance payment for goods to be manufactured. What amount should be reported by Kappa Inc. as accounts payable on December 31, 2019? А. Р2,170,000 В. Р2,680,000 C. P 2,730,000 D. P 2,670,000allowance for doubtful accounts was P1,000,000 at December 31, and P900,000 at January 1, 2020. For the year ended December 31, 2020, the entity reported doubtful accounts expense of P160,000 in the income statement. What amount was debited to the allowance for doubtful account to write off uncollectible accounts in 2020?
- At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended 30 September 2021 the company wrote off accounts totaling P18,000 and recovered P5,000 of accounts written off, and at the end of the year, it is decided that the doubtful account expense should be P20,000. 56) How much is the balance of allowance for doubtful accounts on September 30,2021? a. 44,000 b. 30,000 During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P80,000 and the balance in C. 62,000 d. None of these the allowance account was P4,500. 57)The net realizable value of accounts receivable after the write-off entry was a. P80,000. b. P79,500. Use the following information for the next two questions: A trial balance before adjustments included the following: c. P71,500. d. P75,500. Debit Credit Sales P425,000 Sales returns and allowance P14,000 53,000 Accounts receivable…(a) Assuming no Fair Value Adjustment account balanceat the beginning of the year, prepare the adjusting entryat the end of the year if Laura Company’s available-forsaledebt securities have a fair value $60,000 below cost.(b) Assume the same information as part (a), except thatLaura Company has a debit balance in its Fair ValueAdjustment account of $10,000 at the beginning of theyear. Prepare the adjusting entry at year-end.The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
- At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively', in the following year when paid or collected. The reported pretax income was 20,000 in 2018, 25,000 in 2019, and 23,000 in 2020. Required: 1. Compute the correct pretax income for 2018, 2019, and 2020. 2. Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes. 3. Prepare the journal entries necessary in 2021 if the errors are discovered at the end of that year. Ignore income taxes.