Question

In: Accounting

explain the follow up steps you would want to take to satisfactorily clear each of the...

explain the follow up steps you would want to take to satisfactorily
clear each of the five comments from customers below. Think about and document whether the comment
indicates a concern or not, what fraudulent activity could be happening or what errors could have occurred,
what additional follow-up information would you want to seek out to gain comfort on the situation, etc.
You have been assigned to the first audit of the Chicago Company for the year ending March 31, 2017.
Accounts receivable were confirmed on December 31, 2016, and at that date the receivables consisted of
approximately 200 accounts with balances totaling $956,750. Seventy-five of these accounts with balances
totaling $650,725 were selected for confirmation. All but 20 of the confirmation requests have been returned;
36 were signed without comments, 14 had minor differences that have been cleared satisfactorily, and 5
confirmations had the following comments:
1. We are sorry, but we can’t answer your request for confirmation of our account as the system we are using
does not provide us the necessary information.

2. The balance of $1,050 was paid on December 23, 2016

3. We never received these goods.

4. The $10,000, representing a deposit under a lease, will be applied against the rent due to us during 2018,
the last year of the lease.

5. We do not owe you anything at December 31, 2016, as the goods, represented by your invoice dated
December 30, 2016, number 25050, in the amount of $11,550 were received on January 5, 2017, on FOB
destination terms.

6. The balance of $7,750 was paid on January 5, 2017.

7. Amount okay, as the goods have been shipped to us on consignment, we will remit the payment upon
selling the goods.

8. Your credit memo dated December 5, 2016, in the amount of $440 cancels the balance above.

9. We are contesting the propriety of this $12,525 charge. We think the charge is excessive.

10. An advance payment of $2,500 made by us in November 2016 should cover the two invoices totaling
$1,350 shown on the statement attached.

Solutions

Expert Solution

Possible response is enclosed


Related Solutions

REQUIRED: With your group members, explain the follow up steps you would want to take to...
REQUIRED: With your group members, explain the follow up steps you would want to take to satisfactorily clear each of the five comments from customers below. Think about and document whether the comment indicates a concern or not, what fraudulent activity could be happening or what errors could have occurred, what additional follow-up information would you want to seek out to gain comfort on the situation, etc. You have been assigned to the first audit of the Chicago Company for...
Assume that you are the owner of a large e-business.  Explain the steps that you would take...
Assume that you are the owner of a large e-business.  Explain the steps that you would take to control spam. Be sure to include advantages and disadvantages that accompany your steps.
Assume that you are the owner of a large e-business.  Explain the steps that you would take...
Assume that you are the owner of a large e-business.  Explain the steps that you would take to control spam. Be sure to include advantages and disadvantages that accompany your steps.
Briefly explain the steps, tools, and techniques that you would take to analytically investigate a vibrations...
Briefly explain the steps, tools, and techniques that you would take to analytically investigate a vibrations problem.
Explain and fully justify the steps that you would take as the Chief Audit Executive when...
Explain and fully justify the steps that you would take as the Chief Audit Executive when setting up a new internal audit function in a company.
Explain the steps you would take after a client has disclosed that they are/ have been...
Explain the steps you would take after a client has disclosed that they are/ have been abuse?
What steps would you take to address this stiuation?
RISK MANAGEMENT AND INSURANCEImagine that you are relaxing on your sofa on a Saturday afternoon and the mail arrives. You parse through the mail and find a letter from your home owner's insurance company. Upon opening the letter you read that the insurer indicates that they will not renew your home owner's policy unless you have railings installed on your front brick and bluestone stairs. You gaze out the window and confirm that some neighbors have these railings while most...
PLEASE GIVE THE FULL DETAILS OF THE STEPS ON EACH QUESTIONS SO I COULD FOLLOW UP...
PLEASE GIVE THE FULL DETAILS OF THE STEPS ON EACH QUESTIONS SO I COULD FOLLOW UP YOUR WHOLE EXPLANATIONS. PLEASE WRITE THE STEPS ON SOLVING THIS EXAMPLE EX) STEP 1, STEP 2, ETC HANDWRITING IS OKAY AS LONG AS IT IS READABLE. IF YOU HAVE USED THE EQUATIONS OR CONCEPTS, PLEASE STATE IT CLEARLY WHICH ONE YOU HAVE YOU USED SO I COULD FULLY UNDERSTAND THE DETAILS OF THE STEPS YOU HAVE DONE. PLEASE DO NOT OMIT THE DETAILS OF...
Managing and Monitoring Clinical Trials 1. Explain the (8) steps you would take to inform consent...
Managing and Monitoring Clinical Trials 1. Explain the (8) steps you would take to inform consent a subject to a clinical trial. 2. List the requirements to appropriately consent the patient (such as readability level).
Explain what steps would you take to compare the worthiness of two different financial investments? How...
Explain what steps would you take to compare the worthiness of two different financial investments? How would you choose which investment is a more attractive choice?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT