Solutions_-_Exercises_-_Unit_4

Solutions_-_Exercises_-_Unit_4 - Financial Accounting I...

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Financial Accounting I Grado Administracion de Empresa Exercises
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Chapter 4. Accounts receivable. Basic issues Exercise 4.1: Analysing disclosures of accounts receivable Celulose Company, a Brazilian pulp manufacturer, applies the allowance method and reports its results in thousand of U. S. dollars. For the year ended December 31, 2007 and 2006, Celulose the following information pertaining to accounts receivable: At December 31, 2005, the Allowance for Doubtful Accounts had a balance of $4,067. a. What method has used the company to account for its bad debts? Advantages and disadvantages of this method. b. What is the carrying value of accounts receivable on Celulose´s Balance Sheet for the years ended December 31, 2007 and December 31, 2006? c. What is the total amount that customers owe Celulose as of December 31, 2007, and December, 31 2006? d. What journal entries did Celulose make in 2007 and 2006 to recognize Bad Debt Expense? Solution to exercise 4.1
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This note was uploaded on 02/03/2011 for the course ECON 101 taught by Professor Flora during the Spring '11 term at Universidad Carlos III de Madrid.

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Solutions_-_Exercises_-_Unit_4 - Financial Accounting I...

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