1. What legislation requires the implementation and attestation of internal cont
ID: 2567259 • Letter: 1
Question
1. What legislation requires the implementation and attestation of internal controls for publicly traded companies? (1 point 2. What two principles of GAAP apply to accounting for bad debts? (2 points) 8. October I, a company purchases a building for $160,000. $10,000 salvage value, r 6, the asset book value is $110,000, 6oooo and management determines the salvage value should be $25,000 o, o $10,000. What should depreciation be for the last 3 months of the year? (2 points) a. b. Record depreciation for the Part a. (2 points) 4. At the end of the year, the company reported: Total sales of $375,000 of whiclh $67,500 were cash sales. Accounts receivable balance is $37,000. Allowance for Doubtful Accounts had a beginning credit balance of $3,025, and $2,325 were written off during the year. What is the balance in Allowance for Doubtful Accounts at the end of the year before adjusting entry? (2 points) a. What is the adjusting entry if bad debts are estimated to be 2% of Accounts receivable? (8 points) I. what is the adjusting entry if bad debts are estimated to be 3.5% of credit sales? (3 points) c,Explanation / Answer
2. The principles of : Matching and Conservatism
3. a. Depreciation for the last three months of the year = ($ 110,000 - $ 25,000) / 10 x 3/12 = $ 2,125.
b.
4. a. Balance in Allowance for Doubtful Accounts before adjusting entry = $ 3,025 - $ 2,325 = $ 700.
b. If bad debts are estimated to be 2 % of Accounts Receivable, adjusting entry is as follows :
c. If bad debts are estimated to be 3.5% of credit sales, adjusting entry should be as follows :
Account Titles Debit Credit $ $ December 31, Year 6 Depreciation Expense 2,125 Accumulated Depreciation : Building 2,125Related Questions
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