Questions from Intermediate Accounting

Q: The graph below shows the trend in percentage of uncollectible accounts receivables

The graph below shows the trend in percentage of uncollectible accounts receivables over a five-year period at Luna Incorporated. Required: 1. Interpret the graph and determine, with an explanation, w...

Q: The following is a list of independent scenarios. Assume that each

The following is a list of independent scenarios. Assume that each corporation adopts IFRS. 1. Raja Inc. purchases eight percent of the outstanding shares of Yajoo Inc. 2. Ding Inc. purchases preferre...

Q: The accounts of Polaris Company provided the following 20X5 information at 31

The accounts of Polaris Company provided the following 20X5 information at 31 December 20X5: Accounts receivable $ 1,899,000 (dr.) Allowance for sales discounts 23,500 (cr.) Allowance for doubtful acc...

Q: The net accounts receivable on the books of GJY Corp. as

The net accounts receivable on the books of GJY Corp. as of 1 January 20X3 are as follows: Accounts receivable $ 281,000 Less: Allowance for sales discounts 6,000 Allowance for doubtful accounts 20,65...

Q: At 31 December 20X8, Small Ltd. reported gross accounts receivable

At 31 December 20X8, Small Ltd. reported gross accounts receivable of $2,481,800. Investigation showed the following: 1. The credit balance in the allowance for doubtful accounts was $182,400 after wr...

Q: In preparing the year-end financial statements for 20X7, the

In preparing the year-end financial statements for 20X7, the controller of Risk ’n Save Inc. discovered that the opening inventory for 20X6 had been overstated by $20,000. The company has a 20% income...

Q: Information related to accounts receivable is given: At the beginning

Information related to accounts receivable is given: At the beginning of the year, Health Products Corp. has a balance of $2,450,000 in accounts receivable and $220,000 in the allowance for doubtful a...

Q: Mobile Technology Ltd. reported an unadjusted balance of accounts receivable of

Mobile Technology Ltd. reported an unadjusted balance of accounts receivable of $1,285,000 at 31 December 20X3, along with a credit balance in the allowance for doubtful accounts of $83,100 and an all...

Q: Rondo Ltd. (RL) is a wholesaler operation, with

Rondo Ltd. (RL) is a wholesaler operation, with an active warehouse. Staff at RL have prepared a preliminary list of inventory, following its count on November 30. 1. Goods counted in the physical inv...

Q: Oporto Corp. produces and sells forklift trucks. Model 17A (

Oporto Corp. produces and sells forklift trucks. Model 17A (the “Protex”) has a list price of $140,000. The production cost for the 20 finished Protex units in inventory at the end of 20X4 was $120,00...