Answer To: Review the current asset section of the balance sheet on page F-3 (PDF page 46) and explain what...
Harshit answered on May 03 2021
1 Accounts Receivable represents the total amount of cash which the company is likely to receive from its customers to whom the company made sales and haven’t received the money and left on credit. Allowances in accounts receivable represents the amount of customers bad debts which has gone and irrecoverable so the company makes allowances on the debtors amount so if there’s any loss incurred then the company will charged it on this account. So, lastly in balance sheet it represents the total amount of recoverable debtors the company has less all the allowances charged on it. It shows a net amount of Account Receivables the company has in balance.
1(a) An allowance is a amount charged for doubtful and irrecoverable account when the amount becomes uncollectible.
2. The company value for prepaid is $ 9,680 for the year and $ 9,224 for the previous year. The prepaid means the certain amount of expense or income which the company has incurred or gained in advance before of its occurrence or advance booking is known as prepaid.
2(a)
In the company’s books of accounts, they have made the advance payment of operating expenses such as insurance, incomeand property taxes, software maintenance and supplies, which are expensed. The prepaid expense are expensed when any payment is near future and the company knows about it they make a advance payment for the same.
3. The term property, plant & equipment refers to the total amount of fixed assets the company holds. During the year the company has value of $ 68,414 for the year and $ 76,488 for the pervious year. It’s a balance sheet item which present its amount by netting off, the net off amount means the value of property plant equipment after deducting the amount of depreciation charged during the year.
3(a) The useful life estimate for building is 20 years over straight-line method. The meaning of useful life refers to the recommendation by law for the companies to use its assets over a period of time after that the company will scrap its assets over that period time.
3(b) The historical cost of property, plant &...