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
Answer
A trader maintains allowances for trade receivables to cover 2 percent of trade receivables outstanding at...
- 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...
The chief accountant for Novak Corporation provides you with the following list of accounts receivable written off in the current year. Date Customer Amount March 31 E. L. Masters Company $6,200 June 30 Stephen Crane Associates 5,300 5,600 September 30 Amy Lowell's Dress Shop December 31 R. Frost, Inc. 7,800 Novak follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the Internal...
The unadjusted trial balance at year end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts Net Sales $ 444,000 Debit 1,340 Debit 2,190,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
E7-10 (L03) (Bad-Debt Reporting) The chief accountant for Dickinson Corporation provides you with the following list of accounts receivable written off in the current year. Date Customer Amount March 31 E. L. Masters Company $7,800 June 30 Stephen Crane Associates 6,700 September 30 Amy Lowell's Dress Shop 7,000 December 31 R. Frost, Inc. 9,830 Dickinson follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement...
SECTION B Answer question 2 and not more than one further question from this section 2 The following is the trial balance of Twist Ltd. at 31 December 2012 100,000 30,000 150,000 13,000 75,000 12,650 6,600 1.250 860 5.948 656 Authorised, issued and called-up capital 100.000 equity shares of El cach 60,000 7% redeemable preference shares of 50p each Freehold buildings: cost Freehold buildings: accumulated depreciation Plant and machinery cost Plant and machinery accumulated depreciation Development costs (cost £10,000) Interim...
1. Sales Discounts (6 points) Your company provides sales discounts to customers that pay sooner, and they typically do. You make a sale of $1,000 on 9/1/2020 to your favorite customer and provide terms 2/10, n/30. a) Provide the journal entry to record this sale on 9/1/2020 under the net method. b) Assume the customer pays in full in 8 days. Provide the journal entry to record the cash receipt. c) Instead, assume the customer pays in full in 29...
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 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...