103) Olive Corporation purchases Branch Inc shares on June 21 for $220,000. On October 1 Olive receives a cash dividend of $2,500 from Branch Inc. On December 31st the value of Olive Corporation's investment in Branch has decreased in value to $210,000.
Prepare journal entries needed on June 21, October 1, and December 31, 2010
104) Explain how net realizable value for accounts receivable is calculated. On which financial statement is net realizable value shown?
105) Global Alliance Ltd has just established a lock-box account at a local bank. Explain what this is and why it would be used. Identify the specific element of internal control that the use of a lock-box addresses.
106) Briefly state the main issues in controlling and managing the collection of receivables.
107) Record entries for the following transactions for UTF-8 Corp. UTF-8 Corp. maintains an Allowance for Uncollectible Accounts.
a. Sold merchandise on account to Java Ltd., $1,800.
b. Sold merchandise on account to Centera, $759.
c. Wrote off both the Java Ltd. and the Centera accounts.
d. Centera unexpectedly paid off his account in full.