Examine the table in Note 5 to CAE's financial statements that describes the changes in the allowance for doubtful accounts. By how much did the balance in the account change in fiscal 2012? Why did the balance change? What journal entry would CAE have made to record additions to the allowance account for fiscal 2012? What entry would be made when management determined that a specific amount owing from a customer wasn't going to be collected?
Answer to relevant QuestionsNote 30 discusses credit risk faced by the company. What is the credit risk that CAE faces? What are the economic consequences to CAE of not managing its credit risk well? What steps does (should) the company take to ...Explain why it isn't possible to calculate cost of goods sold when a periodic inventory control system is used if the inventory isn't counted.Why might it be difficult to actually determine the NRV of inventory when applying the lower of cost and NRV rule? Provide some examples of when determining NRV might be difficult.What are biological assets? What makes them different from most other types of assets an entity has? Elko Inc. uses a periodic inventory control system. During Elko's inventory count on December 31, 2017, $200,000 of the inventory was counted twice, in error. Elko reported inventory of $1,550,000 on December 31, 2016 and ...
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