The following is the Trial Balance of Aquib Enterprise as on 31 December 2021: Trial Balance Accounts Title Purchases and returns Freight in Sales and Sales returns Opening inventory Wages Administrative Expenses Insurance Selling and distribution expense Capital Drawings Premises Equipment Accounts receivable Accounts payable Cash Allowances for bad debts Debit Taka 95000 4000 5,000 10,000 20,000 25,000 3,000 10,000 10,000 1,20,000 20,000 19,000 7,000 348,000 Required: (a) A multiple step income statement. (b) Owner's Equity statement. Credit Taka 2500 120,000 150,000 14,000 1.500 348,000 Additional information: (ii) (iii) (1) Tk. 2,000 of wages relates to the next year. Administrative expenses outstanding Tk. 1500. Depreciation on Equipment Tk. 4,000. Ending inventory is Tk. 9,000. Insurance unexpired Tk. 1000. (iv) (v) (vii) Raise allowance for bad debts to 2% of net sales. The owner withdrew goods worth Tk. 5,500 for personal use but not yet recorded.

The following is the Trial Balance of Aquib Enterprise as on 31 December 2021: Trial Balance Accounts Title Purchases and returns Freight in Sales and Sales returns Opening inventory Wages Administrative Expenses Insurance Selling and distribution expense Capital Drawings Premises Equipment Accounts receivable Accounts payable Cash Allowances for bad debts Debit Taka 95000 4000 5,000 10,000 20,000 25,000 3,000 10,000 10,000 1,20,000 20,000 19,000 7,000 348,000 Required: (a) A multiple step income statement. (b) Owner's Equity statement. Credit Taka 2500 120,000 150,000 14,000 1.500 348,000 Additional information: (ii) (iii) (1) Tk. 2,000 of wages relates to the next year. Administrative expenses outstanding Tk. 1500. Depreciation on Equipment Tk. 4,000. Ending inventory is Tk. 9,000. Insurance unexpired Tk. 1000. (iv) (v) (vii) Raise allowance for bad debts to 2% of net sales. The owner withdrew goods worth Tk. 5,500 for personal use but not yet recorded.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11EA: Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables....

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