The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues provision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off. The following two transactions have just been recorded in preparation for finalising the financial statements for the y 31/10/2020:
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- 1. 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…1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. 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 account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) 2. PUColowing is a summary of account receivable and related accounts for three SHOT ON POCO F2 PRO yedis for 1aPR9ly Entererice the financial vear ends 30 Apsl each year.1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. 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 ii. 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 account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
- Black Company provides for bad debts expense at the rate of 2% of credit sales. The following data are available for 2021: Allowance for doubtful accounts, 1/1/21 (Cr.). . RM 10,500 Accounts written off as uncollectible during 2021. 6,500 Credit sales in 2021. 1,750,000 The Allowance for Doubtful Accounts balance at December 31, 2021, should be O A. RM35,000 O B. RM31,000 OC. RM39,000 O D. RM6,500Agogo Trading has the following account balances as at 30 June 2019. RM Account Receivable 200,000 Provision for doubtful debt 6,000 On 30 June 2019, the following adjustment have to be made: Debts of RM500 are to be written off as bad 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 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 account Statement of Profit or Loss (extract) Statement of Financial Position (extract) The following is a summary of account receivable and related accounts for three years for Tommy Enterprise the financial year ends 30 April each year. Year ended 30 April Account receivable as at 30 April (before writing off bad debts) RM Bad debts written off RM Provision for doubtful…1. Agogo Trading has the following account balances as at 30 June(2019. RM Account Receivable Provision for doubtful debt 200,000 6,000 On 30 June 2019) the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. 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 Dt bad debt Cr. AC reccivable 500 500 owed S bad debt recovery iii. Provision for doubtful debts is 2% of the outstanding accounts receivables 200,000 -41000 Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) 100
- Moston Trading has the following trade receivables position: 31 December 2020 31 December 2021 Trade receivables 111,500 154,100 Allowance for doubtful debts 2% 3% For the year ended 31 December 2021 one of the customers who owed Moston Trading £4,100, which is included in the trade receivables balance, has been declared bankrupt and no monies will be received from that customer. The figure that would appear in the income statement for the year ended 31 December 2021 in respect of bad and doubtful debts is: a) £4,100 b) £4,500 c) £2,230 d) £6,370Choose the letter of answer and solution A company reports the following data relative to accounts receivable: Average accounts receivable of P400,000.00 and P416,000.00 in FYs 2021 and 2020, respectively; and Net Credit Sales of P2,600,000.00 and P3,100,000.00 in FYs 2021 and 2020, respectively. The term of sale are net 30 days. Compute the accounts receivable turnover and the collection period in FY 2021. * a. 6.5 times and 56.2 daysb. 7.45 times and 49 daysc. 7.5 times and 56.2 daysd. 6.5 times and 49 daysCurrent Attempt in Progress Bridgeport Limited had net sales in 2023 of $2.2 milion. At December 31, 2C23, before adjusting entnes, the balances in selected accounts were as follows: Accounts Receivable $231,300 debit: Allowance for Expected Credit Losses $3.000 detit. Assuming Bridgeport has examined the aging of the accounts receivable and has determined the Alowance for Expected Credit Losses should have a balance of $25,900, prepare the December 31, 2023 journal entry to record the adjustment toAllowance for Expected Credit Losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry s required, select "To Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles and Explanation Debit Credit eTextbook and Media
- Canucks plc has trade receivables of £424,400 at 31 December 2021. At 31 December 2020 the allowance for doubtful debts was £10,600.For 31 December 2021, the accountant wants the allowance for doubtful debts to be 4% of trade receivables. What is the charge to profit and loss account for 31 December 2021?a) £6,376b) £16,796cc) £27,576 d) £10,600Agogo 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 beenwritten off as bad sent a cheque for RM1,000 in full settlement of the amountowediii. Provision for doubtful debts is 2% of the outstanding accounts receivablesRequired: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)1) A company’s trade payables days and trade receivables days are 60 daysand 30 days, respectively.The sales and purchase information for the year was as follows:Sales Purchases£m £mCash 27 10Credit 35 18Total 62 28What was the trade receivables and trade payables balances at the year end?a) £5.10m and £4.60mb) £2.21m and £1.64mc) £5.75m and £1.48md) £2.88m and £2.96m