The Super power electricity company provides service during the period and bills its customers for the consumption which amounts to RO 50,000. The utility estimates that 8.5% of its billings will not be collected. During the year, the water utility acquired a new generator costing OMR 8000. The vouchers were approved and payment was settled after one week of purchase. Based on the above information answer the following questions 3 questions (Questions 42-44) If the revenues are reported net of uncollectible, which among the following will be the correct journal entry to record revenue from electric utility services? a. Accounts receivable (Debit) 41,500 Allowances for uncollectible (Credit) 4250 utility sales revenue (Credit) 37,250 b. Accounts receivable (Debit) 45,750 Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 41,500 c. Accounts receivable (Debit) 54,250 Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 50,000 d. Accounts receivable (Debit) 50,000 Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 45,750 The entry to record payment to vendor is: a. Cash (Debit) 8000 Vouchers payable (Credit) 8000 b. Vouchers payable (Debit) 8000 Cash (Credit) 8000 c. Vouchers payable (Debit) 8000 Expenses (Credit) 8000 d. Expenses (Debit) 8000 Vouchers payable (Credit) 8000 The journal entry passed at the time of acquisition of generator is: a. Equipment (Debit) 8000 Voucher payable (Credit) 8000 b. Vouchers payable (Debit) 8000 Equipment (Credit) 8000 c. Equipment (Debit) 8000 Cash (Credit) 8000 d. Expenditures (Debit) 8000 Cash (Credit) 8000
The Super power electricity company provides service during the period and bills its customers for the consumption which amounts to RO 50,000. The utility estimates that 8.5% of its billings will not be collected. During the year, the water utility acquired a new generator costing OMR 8000. The vouchers were approved and payment was settled after one week of purchase.
Based on the above information answer the following questions 3 questions (Questions 42-44)
If the revenues are reported net of uncollectible, which among the following will be the correct
Allowances for uncollectible (Credit) 4250
utility sales revenue (Credit) 37,250
Accounts receivable (Debit) 45,750
Allowances for uncollectibles (Credit) 4250
Electric utility sales revenue (Credit) 41,500
Accounts receivable (Debit) 54,250
Allowances for uncollectibles (Credit) 4250
Electric utility sales revenue (Credit) 50,000
Accounts receivable (Debit) 50,000
Allowances for uncollectibles (Credit) 4250
Electric utility sales revenue (Credit) 45,750
The entry to record payment to vendor is:
Cash (Debit) 8000
Vouchers payable (Credit) 8000
Vouchers payable (Debit) 8000
Cash (Credit) 8000
Vouchers payable (Debit) 8000
Expenses (Credit) 8000
Expenses (Debit) 8000
Vouchers payable (Credit) 8000
The journal entry passed at the time of acquisition of generator is:
Equipment (Debit) 8000
Voucher payable (Credit) 8000
Vouchers payable (Debit) 8000
Equipment (Credit) 8000
Equipment (Debit) 8000
Cash (Credit) 8000
Expenditures (Debit) 8000
Cash (Credit) 8000
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