(ii) The Trial Balance of Ammar Trading shows the following balance:, Dr Cr Trade Receivable 60,000 Allowance for doubtful debt 1,000 The allowance for doubtful debt is estimated at 5% per annum.
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2) Outline the extracts of Trade Receivable at
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- 3. The following balances have been taken from the unadjusted trial balance of a tradingorganization for the year ended Dec. 31, 2020:Sales (All on credit) Rs. 650,000Sales Return and Allowance (All from credit sales) 20,000Sales Discount 10,000Accounts Receivable 430,000Allowance for bad debt (Cr.) 2000Required:Record and close bad debt expense for the year ended Dec. 31, 2020 under each of the followingassumptions separately:a. Allowance for bad debt was estimated @ 10% of accounts receivable.b. Bad debt expense was estimated @ 1.5% of net credit sales.Ameera Enterprise had a balance on its allowance for doubtful debts of RM26,250 as at 31 December 2019. Allowance for doubtful debts was estimated at 5% on account receivable. On 31 December 2020, the balance of its net accounts receivable was RM550,000. Calculate the amount of doubtful debts to be shown in the statement of profit or loss for the year ending 31 December 2020 A.RM25,000 B.RM1,250 C.RM2,500 D.RM27,5001. Agogo Trading has the following account balances as at 30 June 2019.RMAccount Receivable 200,000Provision for doubtful debt 6,000On 30 June 2019, the following adjustment have to be made:i. Debts of RM500 are to be written off as badii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required:For the year ending 30 June 2019 show the:a) Provision for doubtful debts accountb) Statement of Profit or Loss (extract)c) Statement of Financial Position (extract) 2. The following is a summary of account receivable and related accounts for threeyears for Tommy Enterprise the financial year ends 30 April each year.Year ended 30 AprilAccount receivable as at 30 April (before writing off bad debts)RMBad debts written offRMProvision for doubtful debt2017 70,000 Nil 2%2018 61,000 1,000 2%2019 83,000…
- D borrowed from XYZ Bank P2,000,000.00 payableat the end of 5 years. Before maturity, anextraordinary deflation supervened causing the valueof the debt to rise to P5,000,000.00 on the date ofmaturity. On due date, B must pay XYZ Bank:a. P2,000,000.00b. P5,000,000.00c. P800,000.00d. P20,000,000.0037-a At the end of the operating period, a rediscount of 7.500 TL has been calculated for the debt securities. Accordingly, which of the following accounts is correct to use in the posting to be made at the end of the period ? a) 321 Debt Securities Hs. Credited 7.500 TL B) 647 Rediscount Interest Income Hs. Creditor 7.500 TL NS) 657 Rediscount Interest Expenses Hs. Borrower 7.500 TL D) 647 Rediscount Interest Income Hs. Borrower 7.500 TL TO) 321 Debt Securities Hs. Borrower 7.500 TLThe allowance for doubtful debts account has a debit balance at the start of the year of $1,000. At the end of the year, debts of $770 inclusive GST are written off and the allowance for doubtful debts is to be adjusted for 5% of the net credit sales of $60,000 exclusive GST. The new amount of the allowance for doubtful debts that is deducted from accounts receivable in the balance sheet is $__________. Group
- Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000Balloons Plus computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $84,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $26,000. What should be the reported figure in the adjusting entry for the current period? A. $84,000 B. $58,000 C. $26,000 D. $110,000Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
