Oman Oil Marketing CompanyCONSOLIDATED STATEMENT OF FINANCIAL POSITIONDecember 31, 2021 and December 31, 2022 (in millions)Current Assets: (Amounts in OMR)_2021Cash and cash equivalents1,000750Accounts receivable, less allowancesof OMR 57 and OMR 59, respectively850Notes to Consolidated Financial Statements (in part)NOTE 2: Trade ReceivablesThe following table summarizes the activity in the allowance fordoubtful accounts20222022Beginning allowance balance 59Charged to costs and expenses 38002021OMROMR614Deductions (*)(5) (6)Ending allowance balance 57 59(*) Represents amounts written off against the allowance, net ofrecoveries.Requireda) Why does Oman Oil Marketing Company combine cashand cash equivalents into one amount on the statement offinancial position?b) For 2022 recreate the summary journal entries that OmanOil Marketing Company must have made for its Allowanceaccount.c) Based on the information presented, comment on the effectof Oman Oil Marketing Company's estimate of bad debtexpense on the financial statements for the periodpresented.d) Oman Oil Marketing Company plans to factor its accountsreceivables to get advantage of factoring. Give yourarguments to support the company's plan.

A consolidated statement of financial position combines the assets, liabilities, and equity of a…

Required a) Why does Oman Oil Marketing Company combine cash and cash equivalents into one amount on the statement of financial position? b) For 2022 recreate the summary journal entries that Oman Oil Marketing Company must have made for its Allowance account. c) Based on the information presented, comment on the effect of Oman Oil Marketing Company's estimate of bad debt expense on the financial statements for the period presented.

Required a) Why does Oman Oil Marketing Company combine cash and cash equivalents into one amount on the statement of financial position? b) For 2022 recreate the summary journal entries that Oman Oil Marketing Company must have made for its Allowance account. c) Based on the information presented, comment on the effect of Oman Oil Marketing Company's estimate of bad debt expense on the financial statements for the period presented.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 22E

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