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...
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....
- 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 2 (16 marks) The following data are available for Husky Co. for 2020: Credit sales...
Question 2 (16 marks) The following data are available for Husky Co. for 2020: Credit sales during 2020 $810,000 Allowance for doubtful accounts, January 1, 2020 19,000 Collection of accounts written off in prior years 1,000 Customer accounts written off as uncollectible during 2020 18,000 Accounts receivable, December 31, 2020 70,500 Husky Co. estimates and records bad debt expense monthly based on 2% of credit sales. Required: a) Calculate the December 31, 2020 balance of the allowance for doubtful accounts...
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...
2. Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31,...
2. Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following (10 marks): Estimated Percentage Uncollectible Current Accounts........................................... $150,000 1% 1-30 days past due.............................................. 15,000 3% 31-60 days past due.............................................. 8,000 6% 61-90 days past due.............................................. 5,000 12% Over 90 days past due.................................... 6,000 30% Total Accounts...
The following items appeared on the Balance Sheet of Bellaire Inc. on 31 December 2020. All...
The following items appeared on the Balance Sheet of Bellaire Inc. on 31 December 2020. All amounts in $ 2020 2019 Trade Receivables (Gross) 880,100 765,000 Allowance for Doubtful Debts (?) (52,800) Net Trade Receivables ? 827,300 In addition, the Ageing analysis for the company was as follows: Age Trade Rec. Default rate 0-30 days 510,000 2% 31-60 days 205,000 6% 61-90 days 120,000 15% 90+ days 45,100 50% Using the above information, compute the Allowance for Doubtful Debts and...
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....
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...
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....
- 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 2 (16 marks) The following data are available for Husky Co. for 2020: Credit sales during 2020 $810,000 Allowance for doubtful accounts, January 1, 2020 19,000 Collection of accounts written off in prior years 1,000 Customer accounts written off as uncollectible during 2020 18,000 Accounts receivable, December 31, 2020 70,500 Husky Co. estimates and records bad debt expense monthly based on 2% of credit sales. Required: a) Calculate the December 31, 2020 balance of the allowance for doubtful accounts...
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 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....
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