VALLEY PUBLISHING COMPA #121 - Accounts Receivable 12/31/1986 (Aged trial balance prepared b

AGE Current Apple Valley Theaters Food Basket Marts Dixons Service Station Luper Dugs Mindy's Department Store The Men's Store Medford Hardware Parnell Chevrolet Pete's Grill Valley Food (Various Local Accounts) (All other local display) National Daily Agency 6,320 6,501 2,160 3,720 7,530 3,071 1,373 5,260 5,128 59,201 25,850 23,041 149,155 T 30-60 Days 60-90 Days

1,140

1,270

1,350 797

18,130 1,100 21,720 T

6,010 1,500 9,577 T

T c

Footing, cross-footings checked Balance and agings traced from Accounts Receivable subsidiary ledger Confirmed. Positive confirmation replied B/2 to B/10. Negative confirmation replied B/11.

Per prior year audit Write-offs are approved by Mr. Duncan Test of reasonableness: over 90 --- 100% x 10,400 60 - 90 --- 50% x 9,577 30 - 60 --- 10% x 21,720 Allowance per books Remainder for current accounts Allowance of $22,050 appears reasonable per above per above and is in line with prior years

10,400 4,788 2,172 17,360 22,050 4,690

LLEY PUBLISHING COMPANY 1 - Accounts Receivable

ed trial balance prepared by client)

Over 90

Total 6,320 6,501 4,570 3,720 7,530 4,421 2,170 5,260 3,690 5,128 59,201 56,700 25,641 190,852 T T T T T T T T T T T T T T c c c c c c c c c c T/B-1

Confirmation Mailed Cash 1/2/1987 Collected positive positive positive positive positive positive negative positive negative positive positive negative positive 6,320 4,550 1,000 3,000 7,530 3,071 5,260 very doubtful 2,628 51,860 28,855 23,041 137,115 T

good account though slow, has always paid eventually good account sometimes a little slow, always pays good account; $797 credit to be allowed

3,690

6,710 10,400 T

over 90 days, very doubtful; 60-90 days accoun

Allowance for bad debts Balance 12-31-85 1986 write-offs 1986 provision (T/B - 4) Balance 12-31-86 17900 18950 -1050 23100 22050 (T/B - 1)

ays paid eventually

w, always pays redit to be allowed

ubtful; 60-90 days accounts, questionable

VALLEY PUBLISHING COMPANY #711, #712, #713 Test of Advertising Revenue 12/31/1986 October Advertising Revenue Rate/Inch 6,512 6,281 3,249 3,767 6,648 4,046 2,512 4,960 8,540 5,642 6,266 4,012 6,006 5,987 9,283 83,621 23,225 2.200 2.200 3.800 3.400 2.200 3.400 4.200 3.200 1.400 3.200 2.000 3.400 2.200 2.300 3.800 2.456 2.883 2.936

Customer

Inches

Local display: Apple Valley Theaters Food Basket Marts Dixon Service Station Luper Drugs Mindy's Department Store The Men's Shop Medford Hardware Parnell Chevrolet Valley Apple Festival Ved Mart Vanline Ford Walser Stores Yale Cafeterias Other local display National display: National Daily Agency

2,960 2,855 855 1,108 3,022 1,190 598 1,550 6,100 1,763 3,133 1,180 2,730 2,564 2,443 34,051 8,056

Classified

14,572

42,783

Test of 1986 revenue per printers' report of Advertising inches Local 350,477 2.456 860,772 946,179 (T/B - 3) National 98,218 2.883 283,162 281,296 (T/B - 3) Classified 169,702 2.936 498,245 504,184 (T/B - 3)

Total inches per year Multiplied by average Revenue per test Revenue per books

Traced to revenue accounts in ledger Per tear sheets examined Average rates per inch computed by auditor