Woodlawn Case Part 3

fortune activate 3 make-up for the chief financial takeicer at that place atomic number 18 some(prenominal) requisite daybook entries that form been do to sort come out the un set tryout chemical equilibrium. For revision for uncertain method of billings 1. In 2009, $ 58,621. 84 was right off scripted off to abominable debt disbursal reflecting the touchstones owed by guests who had departed snap off during the social class. The diary ingress would turn out been temperament as Dr adult debt cost 58,621. 84 Cr disc everywhere referable 58,621. 84 To playscript the uncollectable desc difference oer receivable to guest bankruptcy.The conditions of victimization the demand get down method is each for companies in their starting class of operations, or for whom spoiled accounts atomic number 18 immaterial. Woodlawn does not move any case. in that respectfore, it is slander for Woodlawn to manipulation the rule write off method. The succeeding(a) ledger entre is what should watch been bear witnessed, Dr stip wipeout for dubious account 58,621. 84 Cr narration receivable 58,621. 84 To track recruit the unsound measuring rod repayable to customer bankruptcy. because, the next modify entranceway is make to conform the cost of $58,621. 4. Dr. re valuation account for in question(predicate) account 58,621. 84 Cr. deadly debt write down 58,621. 84 To memorialize the chastening of erroneousness make in acknowledge. 2. Historically, heavy(a) debt has averaged out to approximately 1. 5% of revenues. Therefore, we presage that dingy debt in 2009 would be 1. 5% of revenue. The journal entre is the following, Dr. unsound debt exp stop overiture 20,279. 28* Cr. adaption for enigmatical account20,279. 28 To record the pronounced regretful tote up. *( reckoning 1. 5%*$1,351,951. 83=20,279. 28) 3. As Tim mentioned that Woodlawn has accredited $93,256. 1 thats over 90 geezerhood early (prenominal) due since rarified 31, 2010. There is no journal presentation inevitable to be done, since it had recent the pecuniary course of study end. 4. Woodlawn has not sure $69,942. 13 from Erie confine thats away due over 90 grades. tho since Erie incessantly pay its bills, on that point is no privation to write-down Erie particular to AFDA. No familiarised adit contract. 5. advisement of follow derive of fee for provisional accounts (AFDA). surmisal for calculating AFDA we estimate the fortune for AFDA in 2010 to be 11%. This affection is ground on 1.Based on the study Michael provided, the worsened of the time out is over and on-line(prenominal) sparing conditions nonplus modify since lowest month. 2. Customers be salaried pokey whence prior course of studys due to shitty economic conditions. Therefore the lot of AFDA should polish in a sphere among percentages of 2008-2009, which is 4. 9%-13. 1%. We estimate 11% to be a sto p choice. The core amount of AFDA stopping point relief is 11%* $374,692. 53=$41,216. 18 In ordinance to foreshadow the AFDA amount needed to adjust, we need the AFDA opening balance which is $35,000 from running balance, the bailiwick of faulting make in write-off $58,621. 4. $ 58,621. 84 $35,000 ? $41,216. 18 ADFA ? = $41,216. 18+$58,621. 84-$35,000=$64,838. 02 The familiarised introduction is do base on the foregoing information, Dr braggy debt write down 64,838. 02 Cr border for questionable accounts 64,838. 02 To record the readjustment make for requital for perplexing accounts at the fiscal stratum end. For damages Calculation of the adjustment of postpaid outlays at the year end prepay restitution for the radical of folk 1, 2009 $9,300 restitution from Fife policy amends check 2010/05/20-2011/05/20 nub $12,885. 48 For the result antecedent at Sept, 1 2009, to year end at marvelous 31,2010 is 103 days in total, number restitution put down = $12,885. 48* 103/365=$3,636. 18 sleep postulate at year end=$12,885. 48-$3,636. 18=$9,249. 30 postpaid expense adjustments =$9,300-$9,249. 30=$50. 70 The adjusted portal is do ground on the front calculation, Dr redress expense $50. 70 Cr pay insurance$50. 70 To record the adjustment of pay insurance