pr pertemuan 4, 24 september 2012 case 5-1
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PRTRANSCRIPT
Stern ARCase 5-1Stern Corporation'Balance Sheet1Sales on accounting during 2010 amounted to USD 9,965,575DrCrAR9,965,575.00Sales9,965,575.002Payment received on accounts receivable during 2010 totaled Usd 9,685,420DrCrCash9,685,420.00AR9,685,420.003During the year accounts receivable totaling USD 26,854 were deemed and were written off(below journal assumed that because the words (during the current year) so It is recorded as BDE and AFDA in 20103ADrCrBDE26,854.00AFDA26,854.00if it is written-off, it is not recorded again as AFDA and in AR listing, so we will delete it3BDrCrAFDA26,854.00AR26,854.004Two accounts that had been written of as uncollectible in 2009 were collected in 2010. one account USD 2,108 was paid in fullpartial Payment was made by Hollowell company, USD 1,566. USD 2,486 controller confidence this account will be paid in full because reliable reports(if it is had written off so it is not listed in the detail AR anymore, it is recorded as other income)DrCr4AAR2,108.00AFDA2,108.00
DrCr4BCash2,108.00AR2,108.00
(if company had 100% reliable and supporting document, so we could recorded the written-off AR to Detail AR again)DrCr4CAR2,486.00AFDA2,486.00
DrCr4DCash1,566.00AR1,566.005The allowance for Bad Debt was adjusted to equal 3% of balance in AR at the end of the yearT account for ART account for AFDAT account for CashARAFDACashDrCrDrCrDrCrBeginning Balance988,257.00Beginning Balance(29,648.00)Beginning Balance671,344.0019,965,575.00(9,685,420.00)23B26,854.00(26,854.00)3A29,685,420.000.04C2,486.00(26,854.00)3B(2,108.00)4A4B2,108.000.00.0(1,566.00)4D(2,486.00)4C4D1,566.000.0Total1,242,478.000.00.00.00.03% of Ending Balance37,274.34Total(34,242.00)Total10,360,438.00Additional adjustment(3,032.34)Beginning AFDA34,242.00Ending AFDA(37,274.34)Ending AFDA37,274.34AFDA need to adjust3,032.34
JournalDrCr5BDE3,032.34AFDA3,032.346Acid Test Ratio, Current Ratio, days receivables figuresTimesAcid Test Ratio=Cash+AR11,565,641.668.09Current Liabilities from exhibit1,430,132.00
Current Ratio=Current Asset13,574,106.669.49Current Liabilities from exhibit1,430,132.00
Days of receivables=36536544.14AR Turnover8.27
AR Turnover=Sales9,965,575.008.27Receivables1,205,203.66