The book Principles of Auditing was written by author John Raymond Wildman Here you can read free online of Principles of Auditing book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Principles of Auditing a good or bad book?
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Merrick as presented above illustrates one point in this connection. The account is shown as having an old balance, just how old of course is not disclosed. Notwithstanding this balance more goods were sold to him on January 31 which it will be seen he paid for very soon. On June 7 still more goods were sold to this party. He not only paid for the invoice of June 7 but included in his check something to apply on the old balance. The story told by this account is that of an old balance being red...uced. It is a hopeful sign and indicates good intentions on the part of the customer. Consequently with indications of this kind one should be cautious about classifying the account as doubtful. It is well that all transactions of every description should be put through a customers' account. Sometimes in the case of a customer, such as Merrick appears from the account to have been, checks will be received for current invoices which when presented for collection are returned marked "no funds. " In a case of this kind the check should be charged back to the ac- count so that the account will show the full history of the cus- tomers' relations to the house.
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