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When beginning a spreadsheet-based calculation for a month-end adjusting journal entry, a company often uses the previous month's spreadsheet as a starting point. That is, the previous month's Excel file (e.g., Allowance_Calculation) is copied into a new folder (e.g., ''December calculation folder''). Alternatively, a company could create template that contains logical formulas for making the calculation with no accounts receivable detail and require its staff to start with this blank template for each month's calculation.
Problem a. Why would someone choose to use a prior month's Excel file as a starting point rather than a template? What are some of the costs and benefits of using the prior month's file instead of a template?
Problem b. Do you think that calculations would be less prone to errors if a template was used instead of the prior month's Excel file?
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