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ACC 546 Case 9.7 RedPack Beer Company
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Case 9.7 RedPack Beer Company covers estimating allowance for bad
debt
[2] Following your analysis of the information in Schedules A-D,
assume that you met with RedPack’s Credit Manager, Katie Henson, to
ask her a number of questions related to specific customer accounts in
the Accounts Receivable Aged Trial Balance. A transcript of your
interview notes is provided as Schedule E. Use that information to
address the following:
[a] Based on your reading of the transcript, do you agree with the
specific reserves established by the credit manager for Distinct Beer
Distributor, Eagle Beverage Group, and Golden Holdings? If yes why?
If no what do you believe the specific reserves should be and why?
[b] Based on your reading of the transcript discussion, would you have
any concerns with other aspects related to the reporting of revenues and
accounts receivable? Explain your answer.