Determine whether accounts receiable and sales returns
How should the auditor proceed to determine whether Accounts Receiable and sales returns and allowances contains a material mistatement?What should the auditor do if the auditor confirms the material mistatement in question 1?
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On January 1, 2010, Irik Corporation issued $1,830,700 face value, 7%, 10-year bonds at $1,707,852. This price resulted in an effective-interest rate of 8% on the bonds.
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Present Value of Bonds Payable; Premium Mason Co. issued $870,000 of four-year, 13% bonds with interest payable semiannually, at a market (effective) interest rate of 12%.
Moran Company reports the following operating results for the month of August: Sales $350,000 (units 5,000); variable costs $210,000; and fixed costs $90,000.
Last month, Widner Corporation generated sales of $800,000 and incurred selling and administrative expenses of $320,000, half of which were variable.
CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40.
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