Current Attempt in Progress For each of the following...

Current Attempt in Progress For each of the following oversights, state whether total assets will be understated, overstated, or no effect. 1. Failure to record revenue recognized but not yet received. 2. Failure to record expired prepaid rent. 3. Failure to record accrued interest on a note receivable. 4. Failure to record depreciation. 5. Failure to record accrued wages. 6. Failure to record the recognized portion of unearned revenues.

Transcript

00:01 In this example, you're asking what accounts are affected on the balance sheet or the income statement.

00:07 Accrued interest income of $30 on a note receivable.

00:12 This means i accrued it, so i have interest receivable increase by $30, which is an asset.

00:24 I would also have interest income or interest revenue increase by $30, which would cause net income to increase.

00:39 Recorded estimated bad debt expense.

00:43 This means i would have more bad debt expense.

00:47 It would go up, which would cause my net income to decrease more expenses.

00:55 The other account that is affected is allowance for doubtful accounts.

00:59 This is a contra asset, so it would make my assets go down.

01:06 Rote off an overdue account.

01:10 This means i would decrease allowance.

01:12 For doubtful accounts because it's no longer doubtful that i'm going to receive it because i'm also going to decrease my accounts receivable to show that i'm no longer going to receive it still.

01:24 Here my contra asset would have gone up or is just depleted and my asset is decreased.

01:33 Converted a customer's $1 ,000 overdue account receivable into a note.

01:38 This would mean you're taking away the account receivable and increasing the note receivable.

01:44 So assets go down and up in the same transaction and net income is not affected.

01:54 Accrued $54 of interest on the note...

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