A trader maintains allowances for trade receivables to cover 2 percent of trade receivables outstanding at...
A trader maintains allowances for trade receivables to cover 2 percent of trade receivables outstanding at the year end. Information from her financial records include the following:
Total trade receivables outstanding at end of year - 380,000 pounds
Bad debts still to be written off for the year - 30,000 pounds
Allowances for trade receivables at beginning of year - 64,000 pounds
What is the total charge to the income statement for the year in respect of trade receivables (in pounds)?
A. 30,000
B. 42,000
C. 76,000
D. 36,000
Homework Answers
Answer
- 2% of account receivables = 3800000 pounds x 2% = 76000 pounds
- Unadjusted balance in Allowance account = 64000 pounds – 30000 pounds written off = 34000 pounds
- Adjusted balance required in Allowance account = 76000 pounds
- Total charge to Income Statement = 76000 – 34000
= 42000 pounds. - Correct Answer = Option ‘B’ 42,000
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The answer to the question above is posted below! I just
need an explanation of how NOPAT and net assets were adjusted
below.
Pisces plc produced the following statement of financial position and income statement at the end of the third year of trading: Statement of financial position (balance sheet) as at the end of the third year €m ASSETS Non-current assets 40 Property Machinery and equipment Motor vans 80 Marketable investments Current assets Inventories Trade receivables Cash Total assets...
On January 1, 2016, Parflex Corporation exchanged $344,000 cash
for 90 percent of Eagle Corporation’s outstanding voting stock.
Eagle’s acquisition date balance sheet follows:
Cash and receivables
$
15,000
Liabilities
$
76,000
Inventory
35,000
Common stock
150,000
Property and equipment (net)
350,000
Retained earnings
174,000
$
400,000
$
400,000
On January 1, 2016, Parflex prepared the following fair-value
allocation schedule:
Consideration transferred by Parflex
$
344,000
10% noncontrolling interest fair value
36,000
Fair value of Eagle
380,000
Book value of...
The
net profit is RM25436 & for the balance sheet the total assets
is RM929,136 ... not sure if these answers are right or not.. I got
it from my classmate but I don’t know some of the working... pls
help me
astiom iong trial balance was extracted from the books of Mawar Biru Sdn. Bhd. as at 31 necember 20x2. Credit (RM) 350,000 5,000 14,500 68,000 51,000 500,000 300,000 rchases and sales Returns Tansportation expenses 565,000 3,300 wards receivable...
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