KPMD Is a CPA Firm That Provides Audits,tax Work and Management

question 49

Essay

KPMD is a CPA firm that provides audits,tax work and management advisory services to the Yellowstone region of Wyoming.On December 31,2009 the end of KPMD's fiscal year it had Accounts Receivable of $70,000 and a debit balance in its Allowance for Doubtful Accounts of $1,000.On December 31 KPMD estimated that $4,000 of the accounts receivable would be uncollectible.Then on February 5,2010 they wrote off Shirley Logston's receivable for $500.
Required:
1.Make the entry to record the year end adjustment of Accounts Receivable
2.Show how Accounts Receivable would be presented on the 12/31/09 Balance Sheet
3.Make the entry to write of Shirley Logston's Accounts Receivable on Feb 5,2010.
4.How much will the assets of KPMD be reduced when Shirely's Accounts Receivable
is written off?

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Definitions:

Sovereign Immunity

A legal doctrine that prevents a sovereign state or governmental entity from being sued without its consent.

U.S. Law

The legal system operational in the United States, consisting of both statutes and case law that regulates individuals, entities, and government.

Wholly Owned Subsidiaries

Companies that are completely controlled by another company, the parent company, owning 100% of the subsidiary's shares.

Multinational Enterprise

A large corporation that owns and controls production or delivers services in more than one country.