Scudder company adapted the following changes during

Info icon This is a preview. Sign up to view the full content.

32. Scudder Company adapted the following changes during 2015: * Appropriately changed to the FIFO cost method from the weighted-average cost method for financial statement and income tax purposes. The change will result in a P700,000 decrease in the beginning inventory at January 1, 2015. * Changed its method of accounting for bad debts from the direct write-off method to the allowance method. The company's controller determined that an allowance of P150,000 should be established on that date. * Due to technological changes, depreciable assets will have lower residual values than were originally expected. Analysis shows that depreciation in prior years was understated by P500,000. Ignoring income tax effect, what is the net adjustment to the 2015 beginning balance of retained earnings of Scudder Company?
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern