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AUD390 EVIDENCE Diamond Glory Bhd is a company that manufactures various consumer products.The customers ranging from the supermarkets to retail...

AUD390
EVIDENCE
Diamond Glory Bhd is a company that manufactures various consumer products.The customers ranging from the supermarkets to retail shops.The accounts receivable are computerized and you have to obtained the print-out regarding all the receivables.The information(as shown below) is regarding the company's account receivables as at 30 November 2012 that is a month before the financial year end.You intend to send confirmation to those few selected debtors as at that date.

Analysis the bal of acc.recvble no of account % RM %
Nil balances 771 13.1 - -
credit balances 52 0.9 (234,770) (4.0)
RM1-RM1,000 5,554 77.4 1,468,600 25.0
RM1,001-RM10,000 300 5.1 376,500 6.4
RM10,001-RM20,000 100 1.7 1,206,900 20.5
above RM20,000 30 0.5 2,719,010 46.2
retail debt in the hand 76 1.3 349,856 5.9
of collection agency
total 5,883 100.0 5,886,096 100.0

required:
1)Explain (as if to a non-accountant) of your understanding regarding the assertions that can be achieved through external information.
2)why you will select the following balances for confirmation?Explain
-zero balances
-credit balances
3)what will be the appropriate method of confirmation for the following balances?
-RM1-RM1,000
-Above RM20,000

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Top Answer

Hi I am enclosing the solution file. In case of any... View the full answer

8409635_Solution.docx

Solution
1)Explain (as if to a non-accountant) of your understanding regarding the assertions
that can be achieved through external information.
The Accounts receivable outstanding table indicates...

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