conventional Industries Case studies tralatitious Industries Case studies Purpose: To approximate out the cause and effect of the significant drop of Traditional fabrication??s (??Traditional??) 1989 lolly income, from 1988 record fracture do number. Executive Summary: We have noned the following weaknesses in reporting as the primary cause of Traditional??s bankruptcy: ?? Traditional had not properly recorded uncivilised debt depreciate and account receivable for the year 1988, as such, we distill up stakes reconstruct the journal entries for disobedient debt get down and accounts receivable write-offs for 1987,1988, 1989.
If bad debt expense had been properly recorded at 30% of sales, Traditional will have a net loss of $444,000 in 1988. ?? Management current bad debt expense policy did not appropriately match revenue to expenses incurred, as such, revenue was not properly recognized in conformance to Generally real Account Principle. ?? Traditional??s 1987 annual Report reflected liquid state asser...If you want to get a full essay, order it on our website:
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