From the following particulars of Al Zahra LLC for the year 2019, a. Al Zahra LLC. sold goods to General Trading Company on 1st Jan 2019 RO 20000, in that 25% of cash received immediately. b. The credit term was terms as 3/10 net 30, from the amount due on credit 50% was paid by General Trading Company on 18th January 2019 and the remaining amount was paid on 30th January, 2019. c. On 4th January, 2019, Goods sold to Mr. Ali on credit for RO 12000 was uncollectible because of his sudden death. d. Goods sold to Mr. Ahmed on credit on 5th March, 2019 for RO 6000 through credit card was received after one month ie: on 7th April, 2019, for that interest was @ 5%. e. Amount collected from current years sales was RO 150000 f. From the year 2019 Al Zahra LLC started to use Allowance Method for writing off the un collectables and the total credit sales during the year 2019 was RO 180000the estimated amount of allowance for uncollectible was @ 10% g. The actual uncollectible amount during the year 2019 was RO 5600 h. During the year, RO 3400 was recovered from uncollectible and it was written off. i. On 14th December, 2019 the accounts receivable was disposed off for cash with 2% of service charges. Required: Prepare Accounting Entries for the above Accounts Receivable and Allowance for Uncollectible transactions.
From the following particulars of Al Zahra LLC for the year 2019, a. Al Zahra LLC. sold goods to General Trading Company on 1st Jan 2019 RO 20000, in that 25% of cash received immediately. b. The credit term was terms as 3/10 net 30, from the amount due on credit 50% was paid by General Trading Company on 18th January 2019 and the remaining amount was paid on 30th January, 2019. c. On 4th January, 2019, Goods sold to Mr. Ali on credit for RO 12000 was uncollectible because of his sudden death. d. Goods sold to Mr. Ahmed on credit on 5th March, 2019 for RO 6000 through credit card was received after one month ie: on 7th April, 2019, for that interest was @ 5%. e. Amount collected from current years sales was RO 150000 f. From the year 2019 Al Zahra LLC started to use Allowance Method for writing off the un collectables and the total credit sales during the year 2019 was RO 180000the estimated amount of allowance for uncollectible was @ 10% g. The actual uncollectible amount during the year 2019 was RO 5600 h. During the year, RO 3400 was recovered from uncollectible and it was written off. i. On 14th December, 2019 the accounts receivable was disposed off for cash with 2% of service charges. Required: Prepare Accounting Entries for the above Accounts Receivable and Allowance for Uncollectible transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:From the following particulars of Al Zahra LLC for the year 2019,
a. Al Zahra LLC. sold goods to General Trading Company on 1st Jan 2019 RO
20000, in that 25% of cash received immediately.
b. The credit term was terms as 3/10 net 30, from the amount due on credit 50%
was paid by General Trading Company on 18th January 2019 and the
remaining amount was paid on 30h January, 2019.
c. On 4th January, 2019, Goods sold to Mr. Ali on credit for RO 12000 was
uncollectible because of his sudden death.
d. Goods sold to Mr. Ahmed on credit on 5th March, 2019 for RO 6000 through
credit card was received after one month ie: on 7th April, 2019, for that
interest was @ 5%.
e. Amount collected from current years sales was RO 150000
f. From the year 2019 Al Zahra LLC started to use Allowance Method for
writing off the un collectables and the total credit sales during the year 2019
was RO 180000the estimated amount of allowance for uncollectible was @
10%
g. The actual uncollectible amount during the year 2019 was RO 5600
h. During the year, RO 3400 was recovered from uncollectible and it was
written off.
i. On 14th December, 2019 the accounts receivable was disposed off for cash
with 2% of service charges.
Required:
Prepare Accounting Entries for the above Accounts Receivable and
Allowance for Uncollectible transactions.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education