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  • PR Pertemuan 4, 24 September 2012 Case 5-1

    Caricato da

    Shifa Fauzia Afrianne
    76 visualizzazioni6 pagine
    Stern Corporation's balance sheet for 2010 is presented. It shows accounts receivable of $9,965,575 from sales, with $9,685,420 received in payments. $26,854 in receivables were written off as uncollectible. Two accounts written off in 2009 as uncollectible were later collected in 2010, one in full for $2,108 and one for $1,566 received. The allowance for bad debts was adjusted to 3% of the ending accounts receivable balance of $1,242,478. Financial ratios for acid test, current, and days receivables were also calculated using information from the balance sheet accounts.

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    Stern Corporation's balance sheet for 2010 is presented. It shows accounts receivable of $9,965,575 from sales, with $9,685,420 received in payments. $26,854 in receivables were written off as uncollectible. Two accounts written off in 2009 as uncollectible were later collected in 2010, one in full for $2,108 and one for $1,566 received. The allowance for bad debts was adjusted to 3% of the ending accounts receivable balance of $1,242,478. Financial ratios for acid test, current, and days receivables were also calculated using information from the balance sheet accounts.

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    © All Rights Reserved
    Scarica in formato XLSX, PDF, TXT o leggi online su Scribd
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    76 visualizzazioni6 pagine

    PR Pertemuan 4, 24 September 2012 Case 5-1

    Caricato da

    Shifa Fauzia Afrianne
    Stern Corporation's balance sheet for 2010 is presented. It shows accounts receivable of $9,965,575 from sales, with $9,685,420 received in payments. $26,854 in receivables were written off as uncollectible. Two accounts written off in 2009 as uncollectible were later collected in 2010, one in full for $2,108 and one for $1,566 received. The allowance for bad debts was adjusted to 3% of the ending accounts receivable balance of $1,242,478. Financial ratios for acid test, current, and days receivables were also calculated using information from the balance sheet accounts.

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    di 6

    Case 5-1

    Stern Corporation'
    Balance Sheet
    1 Sales on accounting during 2010 amounted to USD 9,965,575
    Dr
    Cr
    AR
    9,965,575.00
    Sales
    9,965,575.00
    2 Payment received on accounts receivable during 2010 totaled Usd 9,685,420
    Dr
    Cr
    Cash
    9,685,420.00
    AR
    9,685,420.00
    3 During the year accounts receivable totaling USD 26,854 were deemed and were written off
    (below journal assumed that because the words (during the current year) so It is recorded as BDE and AFDA in 2010
    3A
    Dr
    Cr
    BDE
    26,854.00
    AFDA
    26,854.00
    if it is written-off, it is not recorded again as AFDA and in AR listing, so we will delete it
    3B
    Dr
    Cr
    AFDA
    26,854.00
    AR
    26,854.00
    4 Two accounts that had been written of as uncollectible in 2009 were collected in 2010. one account USD 2,108 was paid in full
    partial Payment was made by Hollowell company, USD 1,566. USD 2,486 controller confidence this account will be paid in full because reliable reports
    (if it is had written off so it is not listed in the detail AR anymore, it is recorded as other income)
    Dr
    4A AR

    Cr
    2,108.00

    AFDA

    2,108.00
    Dr

    4B Cash

    Cr
    2,108.00

    AR

    2,108.00

    (if company had 100% reliable and supporting document, so we could recorded the written-off AR to Detail AR again)
    Dr
    Cr
    4C AR
    2,486.00
    AFDA
    2,486.00

    Dr
    4D Cash

    Cr
    1,566.00

    AR
    1,566.00
    5 The allowance for Bad Debt was adjusted to equal 3% of balance in AR at the end of the year
    T account for AR
    AR
    Dr
    Cr
    Beginning Balance
    988,257.00
    1
    9,965,575.00
    (9,685,420.00) 2
    4C
    2,486.00
    (26,854.00) 3B
    (1,566.00) 4D
    Total
    1,242,478.00
    3% of Ending Balance

    37,274.34

    Beginning AFDA
    Ending AFDA
    AFDA need to adjust

    34,242.00
    37,274.34
    3,032.34

    Journal
    5 BDE

    Dr

    Beginning Balance
    3B

    Total
    Additional adjustment
    Ending AFDA

    T account for AFDA


    AFDA
    Dr
    Cr
    (29,648.00)
    Beginning Ba
    26,854.00
    (26,854.00) 3A
    (2,108.00) 4A
    (2,486.00) 4C
    (34,242.00)
    (3,032.34)
    (37,274.34)

    Cr
    3,032.34

    AFDA

    3,032.34

    6 Acid Test Ratio, Current Ratio, days receivables figures


    Acid Test Ratio

    Cash+AR
    Current Liabilities from exhibit

    11,565,641.66
    1,430,132.00

    Current Ratio

    Current Asset
    Current Liabilities from exhibit

    13,574,106.66
    1,430,132.00

    Days of receivables

    365
    AR Turnover

    365

    Times
    8.09

    9.49

    44.14
    8.27

    AR Turnover

    Sales
    Receivables

    9,965,575.00
    1,205,203.66

    8.27

    ng Balance
    2
    4B
    4D

    Total

    T account for Cash


    Cash
    Dr
    Cr
    671,344.00
    9,685,420.00
    2,108.00
    1,566.00
    10,360,438.00

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