AE5 CH 5 WILEY

AE5 CH 5 WILEY - AE5-9 Correct. (Current Assets and Current...

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AE5-9 Correct. (Current Assets and Current Liabilities) The current assets and liabilities sections of the balance sheet of Agincourt Company appear as follows. AGINCOURT COMPANY Balance Sheet (Partial) December 31, 2010 Cash $45,790 Accounts payable $61,400 Accounts receivable $92,450 Notes payable 69,930 Less: Allowance for doubtful accounts 8,410 84,040 $131,330 Inventories 173,960 Prepaid expenses 9,900 $313,690 The following errors in the corporation's accounting have been discovered: 1. January 2011 cash disbursements entered as of December 2010 included payments of accounts payable in the amount of $41,400, on which a cash discount of 2% was taken. 2. The inventory included $27,000 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,000 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
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AE5 CH 5 WILEY - AE5-9 Correct. (Current Assets and Current...

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