a)Present the journal entries for the transactions above.(b)Journalise the adjusting entry. Show workings.(c)Determine the net realizable value of the accounts receivable as at 31 Dec.(d)Is the Allowance Method of accounting for doubtful debt better compared to the direct write-off method? Explain. The following transactions were completed by TAG Ltd during the current year ended 31December.21-FebReceived a cheque of $2,025 from Eagle Trading which has been written offlast year as bad debt.Deposited the cheque from Eagle Trading into the company's bank account.Wrote off the $5,500 balance owed by Peacock Pte Ltd which has becomebankrupt.Received 35% of the $8,800 balance owed by Hydro Ltd from its liquidator.Hydro Ltd has since been wound up by the liquidator.Reinstate the account of MT & Son which had been written off two yearsearlier as bad debt. Recorded the receipt of $1,200 cash in full payment.Wrote off the following accounts as bad debt: Bintan Trading, $10,050; BrightPhoto Studio, $7,200; Milan Furniture, $3,775; Ocean Trading, $2,820.22-Feb31-Mar7-Jul29-Aug31-DecA review was done on the collectability of the accounts receivable on 31 December. Based onthe analysis of the $787,550 balance of accounts receivable, it was estimated that $32,500 willbe uncollectible.The allowance for bad debts has a credit balance of $30,000 at the beginning of the year, 1January.The company uses the Allowance Method of accounting for doubtful debt.

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)Present the journal entries for the transactions above. (b)Journalise the adjusting entry. Show workings. (c)Determine the net realizable value of the accounts receivable as at 31 Dec.

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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