B. Ahmed, as an auditor for Al Saf traders has found that the sales were reported...

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B. Ahmed, as an auditor for Al Saf traders has found that the sales were reported in the Income statement as RO 158,552. Since he is skeptical about the sales assertion and in order to verify and obtain sufficient appropriate audit evidence, he noted down the following information from the accounting records. Al Saf Traders sold 25% of goods for cash during the year. The opening Balance of the Accounts Receivables were OMR 18,755 and the Closing Balance was OMR 24,332. Al Saf Traders have written off OMR 2,355 Bad debts during the year and given a cash discount of OMR 1,023 for the customers for earlier payment. Cash collected from Accounts receivables during the year was RO 109,959. Ahmed finds that there is no material misstatement in the Sales. Do you agree with Ahmed? Show necessary working for your answer. B. Ahmed, as an auditor for Al Saf traders has found that the sales were reported in the Income statement as RO 158,552. Since he is skeptical about the sales assertion and in order to verify and obtain sufficient appropriate audit evidence, he noted down the following information from the accounting records. Al Saf Traders sold 25% of goods for cash during the year. The opening Balance of the Accounts Receivables were OMR 18,755 and the Closing Balance was OMR 24,332. Al Saf Traders have written off OMR 2,355 Bad debts during the year and given a cash discount of OMR 1,023 for the customers for earlier payment. Cash collected from Accounts receivables during the year was RO 109,959. Ahmed finds that there is no material misstatement in the Sales. Do you agree with Ahmed? Show necessary working for your answer.

Answer rating: 100% (QA)

Accounts Receivable Opening RO 18755 Adjusted Balance after writing off bad debt RO 18755 RO 2... View the full answer