Question 2.2 Red Traders have the following Creditors: Balances on 28 February 2019: Clear Traders R74 000 Uniform Traders R46 000 Imagine Traders R105 000 Upon investigation the following errors/omissions were noted: 1. An original credit note for R750 received from Uniform Traders was correctly recorded in the subsidiary journal but was posted to the incorrect side of Uniform Traders' account. 2. No entry has been made for interest charged at 7.5% per annum on Red Traders' account of R44 000 by Clear Traders on 28 February 2019. This amount is 6 months overdue. 3. Goods purchased from Uniform Traders for R15 000 (excluding VAT) was entered correctly into the subsidiary journal but posted to Imagine Traders' account in error. 4. Clear Traders granted Red Traders a credit note for R1 800. The credit note has been entered into the subsidiary journal as R8 100 and posted as such. 5. The total of the creditors journal was overcast by R2 500. Required: Q.2.2 Calculate the final balance owing to each debtor/creditor after taking into account the errors and omissions. Complete the table provided in your answer booklet and remember to show all your workings as marks will be awarded to these.

Question 2.2 Red Traders have the following Creditors: Balances on 28 February 2019: Clear Traders R74 000 Uniform Traders R46 000 Imagine Traders R105 000 Upon investigation the following errors/omissions were noted: 1. An original credit note for R750 received from Uniform Traders was correctly recorded in the subsidiary journal but was posted to the incorrect side of Uniform Traders' account. 2. No entry has been made for interest charged at 7.5% per annum on Red Traders' account of R44 000 by Clear Traders on 28 February 2019. This amount is 6 months overdue. 3. Goods purchased from Uniform Traders for R15 000 (excluding VAT) was entered correctly into the subsidiary journal but posted to Imagine Traders' account in error. 4. Clear Traders granted Red Traders a credit note for R1 800. The credit note has been entered into the subsidiary journal as R8 100 and posted as such. 5. The total of the creditors journal was overcast by R2 500. Required: Q.2.2 Calculate the final balance owing to each debtor/creditor after taking into account the errors and omissions. Complete the table provided in your answer booklet and remember to show all your workings as marks will be awarded to these.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
None
Asap
Do not give answer in image
Question no. 02 (b) (07)Wilson Corporation uses an income statement approach to estimate credit losses. Its Accounts Receivable of $5,000,000 at the beginning of the period had a net realizable value of $4,225,000.During year 2019 company wrote off all of its uncollectible accounts. Of these accounts 35% were subsequently collected. Prepare the entries to record write off using allowance for doubtful account and direct write off approaches. Draft Entry to record the accounts receivable that were subsequently collected. Allowance for doubtful account is treated as an expense or as a liability in general journal. Give reasons for your answer. Moreover explain the treatment of these in balance sheet. What is the characteristic common to all current assets? Many retail stores regularly sell merchandise on installment plans, calling for payments over a period of 24 or 36 months. Do such receivables qualify as current assets? Explain.
Problem 7-4 (Bad Debt Reporting) From inception of operations to 31 December 2019, Fortner Corporation provided for uncollectible accounts receivable under the allowance method. The provisions were recorded based on analysis of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year-end adjustments to the allowance account were made. Fortner's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $130,000 at 1 January 2019. During 2019, credit sales totalled $9,000,000, the provision for doubtful accounts was determined to be $180,000, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2019, and an aging of accounts receivable was prepared for the first time as of 31 December 2019. A summary of the…
% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 1% of credit sales. Required 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 982,000 25,000 Net credit sales 685,000 Page Allowance for Doubtful XA Debit General Ledger Accounts Receivable A Debit Bad Debt Expense E Credit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?
4A
None
Please help me
2021 Dec 31 Recorded Bad Debt Expense of $15,500 2022 Apr 1 Wrote off J.Salazar account of $3500 as uncollectible 2022 June 4 Wrote off T.Savvy account of $4000 as uncollectible 2022 August 10 Recovered $1500 from T. Savvy Required Journalize the transactions using the income statement approach to estimate bad debts. Journalize how Sloan Company would record the T Savvy bad debt situation if the direct write-off method had been used. Assume the bad debt was recovered on August 10, 2023.
Hi please assist