1. the accountant finds from the copy of the loan record and from the company's checking account that the Bank has calculated the interest on 31/12 in the amount of 4,000 euros and has withdrawn the installment of the loan in the amount of 8,000 euros. 2. An additional 20,000 euros from customers are bad debts, the company's policy for the closing year is to cover them with provisions by 100%, and it also amortizes bad customers amounting to 10,000 euros. write the journal entries
1. the accountant finds from the copy of the loan record and from the company's checking account that the Bank has calculated the interest on 31/12 in the amount of 4,000 euros and has withdrawn the installment of the loan in the amount of 8,000 euros.
2. An additional 20,000 euros from customers are
write the
Loan account is a liability account that is accounted for at each installment date and interest accruing date, in order to record the above account accurately.
Debtor account is an asset account, that shows our receivables at each year end , so it is checked for whether any receivables have turned out bad using estimation or provision or writing off of bad debts that were earlier accounted for.
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