Frederick, a wholesaler, has the following information relating to the year ended 31 March 2020: (a) Sales are made on both cash and credit terms. At 1 April 2019 trade receivable were $40,000 and the receivables loss allowance was 7.5% of this amount. (b) Included in opening receivable was an amount of $4,000 relating to Lean which went into liquidation on 2 January 2020. (c) (d) Credit sales during the year were $195,600 and cash sales $87,800. (e) Cash received from trade receivables amounted to $192,300. Apart from Lean's debt, $3,200 of other debts were found to be irrecoverable during the year. (f) The receivables loss allowance at the end of the year is to be 7.5% of year end trade receivables. Required: Write up the ledger accounts for the above transactions

Frederick, a wholesaler, has the following information relating to the year ended 31 March 2020: (a) Sales are made on both cash and credit terms. At 1 April 2019 trade receivable were $40,000 and the receivables loss allowance was 7.5% of this amount. (b) Included in opening receivable was an amount of $4,000 relating to Lean which went into liquidation on 2 January 2020. (c) (d) Credit sales during the year were $195,600 and cash sales $87,800. (e) Cash received from trade receivables amounted to $192,300. Apart from Lean's debt, $3,200 of other debts were found to be irrecoverable during the year. (f) The receivables loss allowance at the end of the year is to be 7.5% of year end trade receivables. Required: Write up the ledger accounts for the above transactions

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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