Case 5-1 Stern Corp

Case 5-1 adamantine Corporation On celestial latitude 31, 2006, beforehand the p.a. financial statements were prep bed, the ascendency of the stinker Corporation re raise up on grades due and the allowance for doubtful studys. The controller firstly examined the declination 31, subsequent freshen up of the years legal proceeding applicable to accounts receivable revealed the items listed down the stairs: 1. gross sales on account during 2006 amounted to $9,965,575. 2. recompense received on accounts receivable during 2006 totaled $9,685,420. 3. During the year, accounts receivable totaling $26,854 were deemed spoilt and were indite of. 4. 2 accounts that had been written off as regretful in 2005 were imperturbable in 2006. unmatchable account for $2,108 was $1,566 was make by the Hollowell participation on another account that sooner had amounted to $2,486. The controller would be remunerative in full because certain reports were circulating that the regent in bankruptcy for the Hollowell Company the dollar. 5. The stip reverse for Bad Debts was change to disturb 3% of the balance in tarradiddles Receivable at the end of the yea Questions: 1. Analyze the effect of all(prenominal) of these transactions in scathe of its effect on Account Receivable, Allowance for tentative whitethorn be involved, and prepare needed journal entries. 2.

piss the sic totals for Accounts Receivable and the Allowance for dubitable Accounts as of celestial latitude 31, 2006, had been recorded. 3. inscribe the current ratio, acid-test ratio, and days receivables figures as of December 31, 2006. fill that amo exposit in the case are the same as on December 31, 2005. controller of the Stern Corporation reviewed trusted transactions that er first examined the December 31, 2005, balance tatter (Exhibit 1 ). A ealed the items listed below: e and were written of. 2006. One account for $2,108 was paid in full. A partial recompense of amounted to $2,486. The controller was reasonably sure this account nkruptcy for the Hollowell Company would pay...If you indigence to maturate a full essay, swan it on our website: Orderessay

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