4 28 8 F. Lourens, a debtor, owed R150. His account was 6 months in arrear and he was charged interest at 16% p.a. without leaving any address. His account was written off on the owner's Joubert Stores was informed that J. Shadie, who owed R128, left town instructions. 15 Charge M. Roelof interest at 15% p.a. on his account of R360 which was 10 months overdue. Owner took goods at cost for own use, R144. 25 Charged interest at 20% p.a. to the following debtors: M. Rossouw R160 C. Mossie [9 months] [6 months] 250 G. Gudarson 460 [3 months] M. Velaphi 450 [16 months] 27 The owner took goods for his personal use. The cost price was R200 and the selling price R260. Write off the following debtors' accounts: hal of Joubert Stores. M. Spick K. Span R. Neat R220 420 375 1 100 P. Tidy 30 The owner withdrew goods from stock for private use. Selling price of the goods was R420 and the mark-up was 50% on cost.

4 28 8 F. Lourens, a debtor, owed R150. His account was 6 months in arrear and he was charged interest at 16% p.a. without leaving any address. His account was written off on the owner's Joubert Stores was informed that J. Shadie, who owed R128, left town instructions. 15 Charge M. Roelof interest at 15% p.a. on his account of R360 which was 10 months overdue. Owner took goods at cost for own use, R144. 25 Charged interest at 20% p.a. to the following debtors: M. Rossouw R160 C. Mossie [9 months] [6 months] 250 G. Gudarson 460 [3 months] M. Velaphi 450 [16 months] 27 The owner took goods for his personal use. The cost price was R200 and the selling price R260. Write off the following debtors' accounts: hal of Joubert Stores. M. Spick K. Span R. Neat R220 420 375 1 100 P. Tidy 30 The owner withdrew goods from stock for private use. Selling price of the goods was R420 and the mark-up was 50% on cost.

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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1 -ok Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/15, net 85. Mr. Warner never takes the discount offered, but he pays his suppliers in 75 days rather than the 85 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount 96
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QUESTION 5 Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 2% uncollectible rate. Accounts more than 60 days are considered old and have a 34% uncollectible rate. Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500. If Duncan has $68,400 of young accounts and $14,200 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?
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Required Information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $851,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $426 account of P. Park is uncollectible and writes it off as a bad debt. On June 5. Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list Journal entry worksheet 1 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal
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