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
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
3)what will be the appropriate method of confirmation for the following balances?
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