11.4 At 30 September 20X2 Tester Co's allowance for receivables amounted to $38,000, which was equivalent to 5% of the receivables at that date. At 30 September 20X3 receivables totalled $868,500. It was decided to write off $28,500 of debts as irrecoverable. The allowance for receivables required was to be the equivalent of 5% of receivables. What should be the charge in the statement of profit or loss for the year ended 30 September 20OX3 for receivables expense? $4

11.4 At 30 September 20X2 Tester Co's allowance for receivables amounted to $38,000, which was equivalent to 5% of the receivables at that date. At 30 September 20X3 receivables totalled $868,500. It was decided to write off $28,500 of debts as irrecoverable. The allowance for receivables required was to be the equivalent of 5% of receivables. What should be the charge in the statement of profit or loss for the year ended 30 September 20OX3 for receivables expense? $4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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11.2 At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 20X1. It was decided to write off debts totalling $38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables. What charge for receivables expense should appear in Bunting Co's statement of profit or loss for the year ended 31 December 20X2? $74,200 $51,800 $28,000 A C
11.2 At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for $50,000 had been brought forward from the year ended 31 December 20X1. It was decided to write off debts totalling $38,000. The allowance for receivables was to the equivalent of 10% of the receivables. What charge for receivables expense should appear in Bunting Co's statement of profit or year ended 31 December 20X2? $74,200 $51,800 $28,000 $24.200. D. ABCD
(2 marks) 112 At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 20x1. It was decided to write off debts totalling $38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables. What charge for receivables expense should appear in Bunting Co's statement of profit or loss for the year ended 31 December 20X2?
At 30 June 20X4 a company's allowance for receivables was $39,000. At 30 June 20X5 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000. The allowance for receivables was to be adjusted to the equivalent of 5 per cent of the trade receivables. What figure should appear in the statement of profit or loss for these items?
At 1 January 20X5 a company had an allowance for receivables of $18,000 At 31 December 20X5 the company's trade receivables were $458,000. It was decided: (a) To write off debts totalling $28,000 as irrecoverable (b) To adjust the allowance for receivables to the equivalent of 5% of the remaining receivables based on past experience What figure should appear in the company's statement of profit or loss for the total of debts written off as irrecoverable and the movement in the allowance for receivables for the year ended 31 December 20X5?
At 30 June 20X4 a company's allowance for receivables was $39,000. At 30 June 20X5 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables based on past events. What figure should appear in the statement of profit or loss for these items?
11. At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: ABCD A. B. C. D. $6,540. $7,800. $7,140. $7,740.
9. Company O has outstanding accounts receivables of $1,650,000 at year-end. During the year, $35,000 of accounts receivables were written-off. The company estimates allowance for bad debts to be 3% of accounts receivables balance. If the allowance for bad debts before adjustment has a debit balance of $1,500, how much should be the amount of adjustment? $13,000 $51,000 $84,500 $86,000
10. On March 1, 20X1 ABC Co. assigned its P1,000,000 accounts receivable to B Bank in exchange for a 2-month 12% loan equal to 75% of the assigned receivables. ABC received the loan proceeds after a 2% deduction for service fee based on the assigned receivables. During March, P500,000 were collected from the receivables. Sales returns amounted to P150,000. How much is the equity on the assigned receivables at March 31? 100,000 250,000 350,000 750,000
113 At 1 July 20X2 the receivables allowance of Q was $18,000. During the year ended 30 June 20X3 debts totalling $14,600 were written off. The receivables allowance required was to be $16,000 as at 30 June 20X3. What amount should appear in Q's statement of profit or loss for receivables expense for the year ended 30 June 20X3? B. $16,600 $12,600 C. $30,600 $48,600
At 1 July 20X5 a company's allowance for receivables was $48,000. At 30 June 20X6, trade receivables amounted to $838,000. It was decided to write off $72,000 of these debts and adjust the allowance for receivables to $60,000. What are the final amounts for inclusion in the company's statement of financial position at 30 June 20X6?
24. Miller Company's allowance for doubtful accounts was P1,000,000 at the end 20XX and P900,000 at the end of 20XX-1. For the year ended December 31, 20XX, Mill reported doubtful accounts expense of P160,000 in its income statement. What amount did Mill debit to the appropriate account in 20XX to write off uncollectible accounts?