IDEA – HW 7

Question 1.

1a. What Control Total is displayed within IDEA based on the work that you performed on Step 6? You will find it on the right side under Properties – look for Control Total. Remember that you must be in the first bigger dataset with 300 observations. Enter a number with two decimal points.
537,776.85

1b. Does this Control Total agree to your client’s general ledger A/R balance for the period ending 3/31/2021? (yes or no) (be sure to look at all the information provided at the beginning).
Yes

Question 2.

2a. What is the control total for this new extracted database? Your answer must agree to your Screenshot#1. (You will also find this on your field statistics for the Subset (i.e. new smaller dataset created) in the Net Value field. Enter a number with two decimal points.
476,204.53

2b. How many records from the entire database (the one you started with) represent transactions that were already paid as of 3/31/2021 or occurred after 3/31/2021? (Be sure to go back and look at the steps that you have just performed and what parameters you have entered into IDEA). Enter a whole number only.
40

Question 3.

Use the Field Statistics Information from the GROSS_AMT column and your general accounting knowledge to answer the questions below. Your answers to items b/c/d below must agree to your Screenshot#1.

3a. What is the normal balance that we expect to see on client’s records regarding A/R customer balances? (debit or credit)

debit

3b. There are 259 total records. How many of these are negative? Enter a whole number only.
44

3c. The negative values represent credit balances, which if large enough may need to be re-classified to accounts payable. What is the amount of credit balances in this smaller dataset? (look for the negative value field). Enter a number with two decimal places, do not enter a negative sign.
(37,982.12)

3d. What is the largest A/R balance owed from one invoice? (look for the maximum value field) Enter a number with two decimal points.
34,156.20

Question 4.

4a. What is the dollar value being confirmed? (i.e. what is the Control Total for the GROSS_AMT). Your answer must agree to your Screenshot#2).
Enter a number with two decimal points.
27,021.97
4b. What percentage of the client’s recorded A/R balance as of 3/31/2021 (i.e. the A/R balance recorded in the general ledger) are we confirming? Round to one decimal place using normal rounding rules.

4c. What is the numerator from your calculation in b? Enter a number with two decimal points.

4d. What is the denominator from your calculation in b? Enter a number with two decimal points.

4e. How many invoices over $10,000 are we confirming? Enter a whole number only.

Question 5.

5a. If the client’s policy is to have an allowance for bad debt for all balances outstanding more than 90 days what should the allowance be at year-end? Your answer must be consistent with your Screenshot#3. Enter a number with two decimal points.

***Hint – make sure that you understand what is being presented in the aging analysis results. See examples below.

the 30 line item represents receivables that are 1-30 days old (3/31 = 1 day old)
the 60 line item represents receivables that are 31-60 days old.

5b. If the client currently has a credit balance of $4,100 in the allowance for bad debt account what journal entry is necessary for the period ending 3/31/2021? You will answer this question through the questions below.

5b.1 What account (name) is debited?

5b.2 What account (name) is credited?

5b.3 What amount is debited/credited (same amount is being debited and credited)? Enter a number with two decimal points.

5c. What percentage of the client’s recorded A/R balance as of 3/31/2021 (i.e. amount recorded in the general ledger) is believed to have a high chance of not being collected (i.e. what % of total A/R does the allowance represent)?

Use your answer in (a) to calculate this and round to one decimal place using normal rounding rules. Enter a number with one decimal point.

5d. Are there are any items that are more than 180 days old? (yes or no) (Be sure to look at the explanation of how to understand this aging report at the beginning of Question 5).

Question 6. Your answer must be consistent with your Screenshot#4.

6a. What is the value of these transactions that are over $10,000 (equals your Control Total on screenshot 4)? Enter a number with two decimal points.
242,574.37
6b. How many of these high value transactions occurred within the last 7 days of the fiscal year-end? Enter a whole number only.