Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* December 2020 and received RO15,000 towards credit sales. The company had debit balance of RO 5500 and the balance inaccounts receivable accounts RO 40,000.Age of Accounts receivableLess than 5 days5 to 10 days11 to 15 days16 to 20 days21 to 25 days26 to 30 daysAmount5,000Percent1%5%2,0009,0005,00010,0009,000| 40,00015%25%30%50%Totala) Calculate the amount required in the allowance for doubtful debts as on 31* December2021, using accounts receivable method.b) Prepare journal entries for bad and doubtful debtsc) Show the accounting treatment of bad and doubtful debts in income statement and balancesheet.d) Explain how the company can control the aged debts and the process to collect them early.

Name: Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* Decem
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Description: Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* December 2020 and received RO15,000 towards credit sales. The company had debit balance of RO 5500 and the balance inaccounts receivable accounts RO 40,000.Age of Accounts receivableLes

A bad debt expense is reported when a receivable is no longer recoverable due to a customer's…

Business

Accounting

Task 2: Rustaq company has sold goods on credit RO 55,000 on 31“ December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days Percent Amount 5,000 1% 5% 2,000 9,000 5,000 10,000 9 000 15% 25% 30% 26 to 30 davs 50%

Task 2: Rustaq company has sold goods on credit RO 55,000 on 31“ December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days Percent Amount 5,000 1% 5% 2,000 9,000 5,000 10,000 9 000 15% 25% 30% 26 to 30 davs 50%

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.8E

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