Case 5-1 Stern Corp

Case 5-1 Stern Corporation On celestial parallel 31, 2006, before the p.a. financial statements were prepared, the controller of the Stern Corporation re touch on rates due and the allowance for doubtful written reports. The controller first examined the declination 31, subsequent review of the years transactions applicable to report cards receivable revealed the items listed down the stairs: 1. Sales on account during 2006 amounted to $9,965,575. 2. Payment received on accounts receivable during 2006 totaled $9,685,420. 3. During the year, accounts receivable totaling $26,854 were deemed uncollectible and were written of. 4. 2 accounts that had been written off as uncollectible in 2005 were imperturbable in 2006. unmatchable account for $2,108 was $1,566 was made by the Hollowell participation on another account that originally had amounted to $2,486. The controller would be compensable in in payoff(p) because reliable reports were circulating that the regent i n bankruptcy for the Hollowell beau monde the dollar. 5. The Allowance for Bad Debts was change to equal 3% of the rest in Accounts due at the end of the yea Questions: 1. discerp the effect of each of these transactions in terms of its effect on Account Receivable, Allowance for tentative may be involved, and prepare necessary journal entries. 2.

piss the correct totals for Accounts Receivable and the Allowance for Doubtful Accounts as of celestial latitude 31, 2006, had been recorded. 3. Calculate the live ratio, acid-test ratio, and days receivables figures as of December 31, 2006. fill that amo described in the case are the same as on De! cember 31, 2005. controller of the Stern Corporation reviewed trusted transactions that er first examined the December 31, 2005, balance tatter (Exhibit 1 ). A ealed the items listed below: e and were written of. 2006. One account for $2,108 was paid in full. A partial recompense of amounted to $2,486. The controller was fairly sure this account nkruptcy for the Hollowell Company would pay...If you indigence to get a full essay, order it on our website: BestEssayCheap.com

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