Exercise 12.1 A firm commenced business on I January 2010 selling for cash and on credit. In the course of operations in 2012 and 2013 it was found necessary to write off debts as shown below: Date customer Amount written off 31 March 2012 Sena Abossey GH¢3,500 30 June 2012 Agnes Ayum GHe4,600 30 September 2012 Kofi Anaba GH¢3,800 30 April 2013 Jojo Amadi GHE1,s00 GHe 500 31 July 2013 31 October 2013 Serwaa Akoto Yaa Agoe GH¢ 300 On 31 December, 2012 and 2013 the balances on the Accounts receivable were GHe 255,000 and GHe320,000 respectively. The firm's policy was to make a provision for doubtful debts of 15% on the accounts receivable balance as at 31 December each year. You are required to prepare: i. The bad debts account for the two years ii. The provision for doubtful debts accounts for the two years and show thefinancial position extracts for the two years.

Exercise 12.1 A firm commenced business on I January 2010 selling for cash and on credit. In the course of operations in 2012 and 2013 it was found necessary to write off debts as shown below: Date customer Amount written off 31 March 2012 Sena Abossey GH¢3,500 30 June 2012 Agnes Ayum GHe4,600 30 September 2012 Kofi Anaba GH¢3,800 30 April 2013 Jojo Amadi GHE1,s00 GHe 500 31 July 2013 31 October 2013 Serwaa Akoto Yaa Agoe GH¢ 300 On 31 December, 2012 and 2013 the balances on the Accounts receivable were GHe 255,000 and GHe320,000 respectively. The firm's policy was to make a provision for doubtful debts of 15% on the accounts receivable balance as at 31 December each year. You are required to prepare: i. The bad debts account for the two years ii. The provision for doubtful debts accounts for the two years and show thefinancial position extracts for the two years.

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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Here is information related to Ayayai Company for 2022. Total credit sales $2,571,000 Accounts receivable at December 31 830,000 Uncollectibles written off 32,300 (a) What amount of bad debt expense will Ayayai Company report if it uses the direct write-off method of accounting for uncollectibles?$__________ (b) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a credit balance of $4,300?$__________ (c) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a debit balance of $4,300?$__________
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! Required information Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $3,000 in cash. July 8 Borrowed $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 note payable. _?____Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _______ Paid the amount due on the note to Fargo Bank at the maturity date. Problem 11-1A (Algo) Part 3 3.…
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