Professional Documents
Culture Documents
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
Cr
3,032.34
AFDA
3,032.34
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