Homework Answers
| Total Receivable | 42,560 | |||||||
| Accounts Receivable up to 2 months | 37,350 | (42560-3620-250-780-560) | ||||||
| A | B | C=A*B | ||||||
| Age of Debt | Amount of Account Receivable | % | Amount of Provision Required | |||||
| Up to 2 months | 37,350 | 2% | 747 | |||||
| 2-3 months | 3,620 | 5% | 181 | |||||
| 3-6 months | 250 | 10% | 25 | |||||
| 6-12 months | 780 | 20% | 156 | |||||
| 12 months | 560 | 30% | 168 | |||||
| TOTAL | 1,277 | |||||||
| Total Provision Required | 1,277 | |||||||
| Provision before adjustment | 1,616 | |||||||
| Amount of adjustment needed | (339) | |||||||
| i) | Provision for doubtful debt on 31st May | 1,277 | ||||||
| ii) | Adjustment to profit for provision | 339 | ||||||
| iii) | PROVISION FOR DOUBTFUL DEBTS | |||||||
| DEBIT | CREDIT | |||||||
| Opening Balance | 1,616 | |||||||
| Adjustment to profit | 339 | |||||||
| Closing Balance | 1,277 | |||||||
| NOTE: As per HOMEWORKLIB RULES, only one question should be answered | ||||||||
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QUESTION 2 Brosnan, a sole trader, has total receivables of €42,560 on the 31" May 2020...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31 December 2018 60-90 days Over 91 days Account Receivables Aging Schedule Name Total 1 - 30 days 31-60 days (RM) Total Account 92,500 31,000 34,000 Receivable Estimated 2% 3% uncollectible 21,500 6,000 4% 5% Required: a) What is bad debt? (2 marks) b) Explain 2 reasons why company should allocate some amount for bad debts/uncollectible? (2 marks) c) Calculate the total estimated bad debts...
- BA is a sole trader. The business's trial balance on 31 December 2018 is as...
- BA is a sole trader. The business's trial balance on 31 December 2018 is as follows: Debit Credit Capital 121,600 22,000 Motor vehicles at cost Depreciation to 1 January 2018 Equipment at cost Depreciation to 1 January 2018 Inventory as at1 January 2018 Trade receivables Trade payables 44,000 102,000 15,000 9,000 22,500 51,000 42,000 Sundry expenses 8,500 14,000 5,000 64,000 Heating and lighting Wages and salaries 3,300 428,000 302,000 2,000 Purchases returns Carriage inwards Carriage outwards Provision for doubtful...
Mr Jamil, a trader, completed a year’s trading on 31 October 2020. The following balances were extracted from the business records
. Mr Jamil, a trader, completed a year’s trading on 31 October 2020. The following balances were extracted from the business records: Particulars Debit RMCredit RMPurchases and Sales 52,650 160,720Sales returns and purchases returns 340 1,213Land 100,000Machines 140,000Office equipment 30,000Vehicles 75,000Provision for depreciation at 1 November 2019: Machines Office equipment Vehicles 28,000 16,800 28,000Office expenses 11,500Cash in hand 175Selling expenses 8,820Drawings 6,000Wages 48,000Stock at 1 Nov 2019 2,500Provision for doubtful debts as at 1 Nov 2019 650Debtors and creditors 14,500 8,600Repairs 2,370Bad debts 240Jamil – Capital account as at 1 Nov 2019 251,512Cash at bank 3,400TOTAL 495,495 495,495Mr Jamil also provides the following information at 31 October 2020: i. Stock was valued...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31 December 2018 1/40 60-90 days Over 91 days 0.03 Account Receivables Aging Schedule Name Total 1 - 30 days 31- 60 days (RM) Total Account 92,500 31,000 34,000 Receivable Estimated 2% 3% uncollectible 21,500 6,000 4% 5% 1010 d) Show the accounting treatment for bad debt: i) Journalize the adjusting entry for bad debts on 31 December 2018 by assuming the unadjusted balance for...
On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Credit...
On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Credit Account Accounts receivable Allowance for doubtful accounts Sales ($2,790,000 cash sales) Debit $2,090,000 32,000 $11,160,000 Required: 1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 2% of credit sales. b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible....
The following shows the unadjusted Trial Balance of Services as at 31 August 2020 is as...
The following shows the unadjusted Trial Balance of Services as at 31 August 2020 is as follows: Services Unadjusted Trial Balance as at 31 August 2020 Debit Credit RM RM Cash at Bank 70,400 Account Receivable 100,600 Provision for Doubtful Debts 4,000 Premises 220,000 Furniture 40,000 Accumulated Depreciation - Depreciation 8,000 Accounts Payable 80,000 Unearned Revenue 24,000 Loan @ 6% interest 100,000 Capital, Services 200,000 Drawings 3,000 Revenue 103,000 Prepaid Insurance 36,000 Utility expense 21,000 Salary Expense 25,000 Interest Expense...
Question 2 Tumisang Moshe, a sole trader, extracted the following trial balance from his books at...
Question 2 Tumisang Moshe, a sole trader, extracted the following trial balance from his books at the close of business on 31 July 2018 Debat Credit Purchases 65.240 137.425 Sales Capital Bank 45. 20.000 Discount allowed Returns Inwards Returns outwards Carriage inwards Rent Provision for doubtful dichts Office furniture Motor Van 12, 300 10, 500 Accounts Receivables Accounts Payables Drawings Salaries and wages General expenses Total 19,600 42.000 195,670 195,670 Additional Notes 1. Closing inventory 31 March 2017 P6,500 ii....
Problem 85A Accounts receivable transactions and bad debt adjustments 01, 2, 3 CHECK AGURES: 2. Bad...
Problem 85A Accounts receivable transactions and bad debt adjustments 01, 2, 3 CHECK AGURES: 2. Bad Debt Expense = $20,460,5. Bad Debt Expense = $7.200 Swiss Supplies showed the following selected adjusted balances at its December 31, 2019. yearend: Accounts Receivable Dec. 31/19 Balance Allowance for Doubtful Accounts 16,400 Dec. 31/19 Balance 490,000 During 2020, the following selected transactions occurred: 2. Sales totalled $2.800.000, of which 25% were cash sales (cost of sales $1.804,000). Sales returns were $108,000, half regarding...
You are required to prepare the following for the company: a) Journal for the adjusting entries...
You are required to prepare the following for the
company:
a) Journal for the adjusting entries on 31 March 2020.
(7)
b) Statement of Comprehensive Income for the year ended 31
March 2020.
(12)
c) Statement of Financial Position as at 31 March 2020.
The following trial balance was extracted from the books of Rauf Trading Company as at 31 March 2020. Accounts Debit (RM) Credit (RM) Sales 314.30 185.600 320 8.200 32.800 Purchases Discounts received and Discounts allowed Cash...
Whispering Company has accounts receivable of $108,600 at March 31, 2020. Credit terms are 2/10, n/30....
Whispering Company has accounts receivable of $108,600 at March
31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is
a $1,500 credit balance in Allowance for Doubtful Accounts prior to
adjustment. The company uses the percentage-of-receivables basis
for estimating uncollectible accounts. The company's estimate of
bad debts is shown below.
Age of Accounts
Balance,
March 31
Age of Accounts
Balance,
March 31
Estimated Percentage
Uncollectible
2020
2019
Current
$72,300
$75,000
4%
1–30 days past due
18,200
8,000...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31 December 2018 60-90 days Over 91 days Account Receivables Aging Schedule Name Total 1 - 30 days 31-60 days (RM) Total Account 92,500 31,000 34,000 Receivable Estimated 2% 3% uncollectible 21,500 6,000 4% 5% Required: a) What is bad debt? (2 marks) b) Explain 2 reasons why company should allocate some amount for bad debts/uncollectible? (2 marks) c) Calculate the total estimated bad debts...
- BA is a sole trader. The business's trial balance on 31 December 2018 is as follows: Debit Credit Capital 121,600 22,000 Motor vehicles at cost Depreciation to 1 January 2018 Equipment at cost Depreciation to 1 January 2018 Inventory as at1 January 2018 Trade receivables Trade payables 44,000 102,000 15,000 9,000 22,500 51,000 42,000 Sundry expenses 8,500 14,000 5,000 64,000 Heating and lighting Wages and salaries 3,300 428,000 302,000 2,000 Purchases returns Carriage inwards Carriage outwards Provision for doubtful...
Question 1: Jaafar Trading Sdn Bhd (JTSB) has has the following ageing schedule as at 31 December 2018 1/40 60-90 days Over 91 days 0.03 Account Receivables Aging Schedule Name Total 1 - 30 days 31- 60 days (RM) Total Account 92,500 31,000 34,000 Receivable Estimated 2% 3% uncollectible 21,500 6,000 4% 5% 1010 d) Show the accounting treatment for bad debt: i) Journalize the adjusting entry for bad debts on 31 December 2018 by assuming the unadjusted balance for...
On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Credit Account Accounts receivable Allowance for doubtful accounts Sales ($2,790,000 cash sales) Debit $2,090,000 32,000 $11,160,000 Required: 1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 2% of credit sales. b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible....
Question 2 Tumisang Moshe, a sole trader, extracted the following trial balance from his books at the close of business on 31 July 2018 Debat Credit Purchases 65.240 137.425 Sales Capital Bank 45. 20.000 Discount allowed Returns Inwards Returns outwards Carriage inwards Rent Provision for doubtful dichts Office furniture Motor Van 12, 300 10, 500 Accounts Receivables Accounts Payables Drawings Salaries and wages General expenses Total 19,600 42.000 195,670 195,670 Additional Notes 1. Closing inventory 31 March 2017 P6,500 ii....
Problem 85A Accounts receivable transactions and bad debt adjustments 01, 2, 3 CHECK AGURES: 2. Bad Debt Expense = $20,460,5. Bad Debt Expense = $7.200 Swiss Supplies showed the following selected adjusted balances at its December 31, 2019. yearend: Accounts Receivable Dec. 31/19 Balance Allowance for Doubtful Accounts 16,400 Dec. 31/19 Balance 490,000 During 2020, the following selected transactions occurred: 2. Sales totalled $2.800.000, of which 25% were cash sales (cost of sales $1.804,000). Sales returns were $108,000, half regarding...
You are required to prepare the following for the
company:
a) Journal for the adjusting entries on 31 March 2020.
(7)
b) Statement of Comprehensive Income for the year ended 31
March 2020.
(12)
c) Statement of Financial Position as at 31 March 2020.
The following trial balance was extracted from the books of Rauf Trading Company as at 31 March 2020. Accounts Debit (RM) Credit (RM) Sales 314.30 185.600 320 8.200 32.800 Purchases Discounts received and Discounts allowed Cash...
Whispering Company has accounts receivable of $108,600 at March
31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is
a $1,500 credit balance in Allowance for Doubtful Accounts prior to
adjustment. The company uses the percentage-of-receivables basis
for estimating uncollectible accounts. The company's estimate of
bad debts is shown below.
Age of Accounts
Balance,
March 31
Age of Accounts
Balance,
March 31
Estimated Percentage
Uncollectible
2020
2019
Current
$72,300
$75,000
4%
1–30 days past due
18,200
8,000...
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