Auditing Assignment
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Category: Business and Industry
Date Submitted: 10/24/2011 12:07 AM
Assignment 6
D. Briefly explain the reasoning behind your assessment.
The accounts receivable balance was rectified after making the journal entries by crediting $1,576 to bad debt expense account. This entry was recorded due to confirmed misstatement received from customers
Oceanview Marine Company
21-1 |
SB 02/24/08 |
Accounts Receivable Leadsheet
December 31, 2007
Account Number and Name | 2007 Balance | Net Adjustments | 2007 Adjusted Balance | 2006 Balance | % Change (before adjustment) |
1100 — Accounts receivable 21-9 | 1,762,682 | 1,576 | 1,764,258 | 1,402,229 | 25.71% |
| G/L | | | PY | |
| | | | | |
1110 — Allowance for bad debts | – 116,636 | 0 | -116,636 | – 116,636 | 0.00% |
| G/L | | | PY | |
Total | 1,646,046 | 1,576 | 1,647,622 | 1.285 ,593 | 28.04% |
| F | | | F | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Tickmark Legend | | | | | |
| | | | | |
G/L Agreed to general ledger. | | | | | |
| | | | | |
PY Agreed to prior year’s workpapers. | | | | | |
| | | | | |
F Footed without exception. | | | | | |
Oceanview Marine Company
21-2 |
SB 02/24/08 |
Adjusting Journal Entries: Accounts Receivable
December 31, 2007
Account Number and Name | Debit | Credit |
6100 — Bad debts expense | $ 31,706.00 | |
1110 — Allowance for bad debts | | $ 31,706.00 |
Explanation: To adjust allowance account to estimated balance at year-end.Estimated allowance 21-15 $ 148,342Per client's books $116,636 | | |
1100 – Accounts receivable $1,576
6110 – Bad debt expense $1,576
Explanation: To adjust the receivable account balance
Due to difference in confirmed misstatement
Oceanview Marine Company
21-3 |
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Audit Program — Accounts...
