BPeviy emer has no eppeck on fhe hist bale ep A/R , orgy he inividud on ot CE ET ' a “et oy neg SUBSTANTIVE PROCEDURES FOR RECEIVABLES (Including Sales on account) Acouis receivables ae fo ship customers alsibactonts ecenales endGationn procedursfor conGamtinns nt sud. teat accotntyrecTrables Gicluinghales on account) emer Existing receivables are properly recorded for credit sales transactions occurred = Cuvofftest is wind Voiiguiiouse Accounts receivables are owned by the client. «Review minutes of the board meetings for receivables that has been assigned or pledged. q nt personnel, read related contracts and agreements. third parties (lenders) any indicators that receivables have been assigned, sold, ‘© Inquiry with cl = Confirmation and pledged. Based on Sate 2 do on ostiensing BO r nat Receivables are properly valued. 9 Agen of erect regent receivable aging schedulDund wag ito the \ Sis - \ ‘+ Verify mathematical accuracy of the (hoes re) Me ateceable subsiiag legen 2) Teatthe acewacy ofthCallowance for neolestble account me > Reccalculation of allowance for neoetb a & a Receivables (including erdit sales) are properly presented and __702,000_ 3¢0__ Total = hie ae P4,123,000, “S9g5 > Vicks 31 15 n Your inquiries and investigation revealed the following information th subsidiary ledger. The general ledger i. The trade receivable control account is not in agreement wit batanee ss 965,000.The account from ton the collection ot ous ost customer was resovered du the year. The accountant forgot to resord account. NE Y la iii. The allowance HI for bad debts account had the following details: January 1, balance 22.250 Ales. June 30, vite off (1500) Soon August 31, write off (5,000) " * 3 October 31, write off (6,500) a> Recovery 3.000 Ca re” December 31, Provision __41,230 ad December 31, balance __P53,480, — iv." The company’s pote’ isto provide (Sof the outstanding balance of wade resevables es inca Determine the following as of December 31, 2017: The adjusted balance of trade receivable is: 3.905" The allowance for baldebisis: 54 775 The bad debrexpense is: 54 53S wags 50.977 = 292s 225 Amount of trade recgivables in the statement of financial position is: The proposed entry fo adjust bad debt expense would include a debit of: bAwNE CASES In connection with the audit ofthe financial statements of Twenty One Pilots Company, the audit manager provided you the instructions to examine the details of the company's accounts receivable, ‘You have extracted the following balances fram the tial balance prepared by the client as ef December 31, 2017: fee OL, ‘Accounts receivable 835,00 ‘Allowance for bad debts ~ beginning 30,000 ‘You made and inquiry with the client and inspect some documents, the client provided you the schedule for the balance of accounts receivable as follows: ‘Accounts with debit balances (60 days old and below 477,000 61 t0 90 days 234,400 Over 90 days 170,800 882,200 Advances to officers € 32,800. ‘Accounts with eredit balances 60,000) ‘Accounts receivable per GL pxgs,000_ } “The cei tlance in euomer ect etese’s callin oma stmer whose aout as been Fa a acu cota Tor orn ding P4000 shold ve wen of 'A confirination letters were sent £0 various customers, an excerpt, from the exceptions noted was summarized below: Customer Customer's comments Remarks a The client failed to record credit memo No. 52 for ® Alger Thegvodssoldon DecembeF 4 Were _p36,999::-The merchandise was included in the retuned on December 20,2017. ending inventory at cost. Investigation revealed that goods sold For E3S,000—> We do not owe this amount, We do were shipped to Aeson on December 29,2017; FOB ‘Aeson not receive any merchandise from__, Shipping poind. The goods were lost in transit and the ‘your company. pups Sipping company has acknowledged its responsibility for the loss of merchandise. NE Tam entitled for 10% employee ) Alloy discount, Your bill should be reduced by P2,500, Alloy is an employee of Twenty One Pilots who started working November of 2017; all company