L13 Notes_Part_13 - If so state why If not do the following...

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© W.R. Knechel Accounts Receivable Valuation Aging of Accounts Receivable Days Amount Outstanding Due 1 - 30 $31,020 31 - 60 19,910 61 - 90 15,322 91 - 120 9,897 120+ 10,963 Balance at 12/31/06 $87,112
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© W.R. Knechel Accounts Receivable Valuation Assume the valuation of accounts receivable is material to the audit. The client's policy is to write off accounts receivable when they are deemed uncollectible. For example, the client made the following entry in 2009: 3/15/09 Bad Debt Expense 20,791 Accounts Receivable 20,791 To record the write off of accounts considered uncollectible. Due to dramatic growth, the client is experiencing some cash flow problems and is seeking a loan from Downtown bank. The bank will not grant the loan unless the financial statements are audited, which is why the client contacted you. The company has not previously been audited. 1. Are you satisfied with the client's valuation of Accounts Receivable?
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Unformatted text preview: If so, state why. If not, do the following: a) Outline the main points you intend to cover with client management regarding accounts receivable valuation. b) present in GOOD FORM any adjusting journal entry you intend to propose to the client, and c) describe how you feel the client will probably react to these ideas and any proposed adjusting entry. © W.R. Knechel Proof of Cash – Tuck Company 29. The following information was obtained in an audit of the cash account of Tuck Company as of December 31, 19X7. Assume that the CPA has satisfied himself as to the validity of the cash book, the bank statements, and the returned checks, except as noted. 1. The bookkeeper's bank reconciliation at November 30, 19X7. Balance per bank statement Add: Deposit in transit Total Less: Outstanding checks #2540 1501 1503 1504 1505 Balance per books $140 750 480 800 30 $19,400 1,100 20,500 2,300 $18,200...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L13 Notes_Part_13 - If so state why If not do the following...

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