Whiskey Co.November 20September 4August 22,000,000900,000500,000Uniform Inc.December 101,750,000600,000500,000October 4July 5September 9July 10March 5Tango Corp.2,600,0001,250,000900,000Romeo Co.December 1(500,000)Audit notes:a. The company's term is n/60 days.b. The company's general ledger shows the following balances as of December 31, 2014:Accounts ReceivableAllowance for doubtful accountsP13,650,000(950,000)c. The credit balance of the receivable resulted from Romeo Co.'s overpayment of itsaccount. The same shall be settled by a delivery of merchandise the following period.d. You have discovered that Uniform Inc.'s payment of an October 4 invoice amountingto P600,000 was posted against Whiskey Co.'s account for an invoice Dated December4, for the same amount.e. Discussions with the credit department manager revealed the following appropriatecredit policy:Accounts receivable ageCurrent1-60 days past due61-120 days past dueMore than 120 days past due% doubtful of collection2%5%20%50%Requirements:1. How much is the unreconciled difference between the control account the subsidiaryledger?2. What is the correct accounts receivable balance as of December 31, 2014?3. Assuming that there were no other entries affecting the allowance for bad debts, what isthe correct bad debt expense for 2014?4. What is the correct amortized cost of the receivables as of December 31, 2014? The accountant of Mahoganny Corp. presented to you the following details of its subsidiaryledger in relation to your audit of the company's accounts receivable balance as of December31, 2014:Invoice DateAmountCustomerZulu Inc.550,0001,200,000950,000420,000December 20December 1October 11August 4

Accounts Receivable Accounts receivable is considered to be one of the liquidity generation to the…

More than 120 days past due 50% Requirements: 1. How much is the unreconciled difference between the control account the subsidiary ledger? 2. What is the correct accounts receivable balance as of December 31, 2014? 3. Assuming that there were no other entries affecting the allowance for bad debts, what is the correct bad debt expense for 2014? 4. What is the correct amortized cost of the receivables as of December 31, 2014?

More than 120 days past due 50% Requirements: 1. How much is the unreconciled difference between the control account the subsidiary ledger? 2. What is the correct accounts receivable balance as of December 31, 2014? 3. Assuming that there were no other entries affecting the allowance for bad debts, what is the correct bad debt expense for 2014? 4. What is the correct amortized cost of the receivables as of December 31, 2014?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 18RQSC

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