At the end of the year, Syer Associates had a debit balance in its allowance for uncollectible accounts of $12,000 before adjustment.

 At the end of the year, Syer Associates had a debit balance in its allowance for uncollectible accounts of $12,000 before adjustment. The balance in Syer's gross accounts receivable is $600,000. Syer's management estimates that 10% of its accounts receivable balance will not be collected.

What journal entry should Syer record to adjust its allowance for uncollectible accounts?

 

Explanation

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At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $12,000 before adjustment. The balance in Breyer's gross accounts receivable is $600,000. Breyer's management estimates that 10% of its accounts receivable balance will not be collected.

 At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $12,000 before adjustment. The balance in Breyer's gross accounts receivable is $600,000. Breyer's management estimates that 10% of its accounts receivable balance will not be collected.

What journal entry should Breyer record to adjust its allowance for uncollectible accounts?

 

Explanation

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At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $300,000. Gaur's management estimates that 6% of the accounts will prove uncollectible.

 At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $300,000. Gaur's management estimates that 6% of the accounts will prove uncollectible.

What journal entry should Gaur record to establish an allowance for uncollectible accounts?

 

Explanation

Allowance for uncollectible accounts = $300,000 × 6% = 18,000

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On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each.

 On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the net method to account for sales discounts.
 
In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022? By how much?

 Answer

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The following items appeared on the year-end trial balance of Consolidated Freight Corporation:

 The following items appeared on the year-end trial balance of Consolidated Freight Corporation: cash in a checking account, U.S. Treasury bills that mature in six months, undeposited customer checks, cash in a savings account, and currency and coins. Which of these items would be included in the company’s balance sheet as cash and cash equivalents?

 

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Cutler Company has a cash account with a balance of $250,000 with Wright Bank and a cash account with an overdraft of $5,000 at Lowe Bank.

 Cutler Company has a cash account with a balance of $250,000 with Wright Bank and a cash account with an overdraft of $5,000 at Lowe Bank.
 
What would the current assets section of Cutler’s balance sheet include for “cash” under IFRS? Under U.S. GAAP?

 Answer

 

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