Corporate Finance Assignment/ Professional Essay Writers

The following control account has been prepared by a trainee accountant: Receivables ledger control account$ $Opening balance 308,600 Cash 147,200Credit sales 154,200 Discounts allowed 1,400Cash sales 88,100 Interest charged on overdue accounts 2,400Contras 4,600 Irrecoverable debts 4,900Allowance for receivables 2,800Closing balance 396,800 –––––––– ––––––––555,500 555,500 –––––––– ––––––––What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?

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A $395,200B $304,300C $309,500D $307,10032 Which of the following material events after the reporting date and before the financial statements are approved are adjusting events?

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(1) A valuation of the property providing evidence of impairment in value at the reporting date.

(2) Sale of inventory held at the reporting date for less than cost.

(3) Discovery of fraud or error affecting the financial statements.

(4) The insolvency of a customer with a debt owing at the reporting date which is still outstanding.

A. 1, 2, and 4 only.

B. 1, 2, 3, and 4.

C. 1 and 4 only.

D. 2 and 3 only.  Get FInance Help Today

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