Following your analysis of the information in Schedules A - D , assume that you met with
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Question:
Following your analysis of the information in Schedules AD assume that you met with RedPacks Credit Manager, Katie Henson, to ask her a number of questions related to specific customer accounts in the Accounts Receivable Aged Trial Balance. A transcript of your interview notes is provided as Schedule E Use the information provided in Schedules AE to address the following question:
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Based on the information, develop an estimate of the account balance for the allowance for bad debts and compare your expectation to the clients estimate summarized in Schedule B for the allowance for bad debts. Does the amount you estimated agree with the clients estimate in Schedule B If it does not agree, by how much does it differ and is that difference material?
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
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