Question Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the joumal entry required by Albert Trading in this situation.
Question Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the joumal entry required by Albert Trading in this situation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question
Part A
Albert Trading Limited used the statement of financial position approach to estimate the
impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed
that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The
Allowance for Impairment has a debit balance of $6,200 prior to adjustment.
Required:
(Explanation of the Journal Entry is not required)
Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable.
Part B
On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading,
determined that a receivable from Peter Lee in the amount of $3,400 was worthless.
Required:
(Explanation of the Journal Entry is not required)
Prepare the joumal entry required by Albert Trading in this situation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa58e3112-0372-4933-9de7-50b4616f396e%2F725c0c07-83be-43b4-beeb-1ff49249cbc0%2F8p4y7k_processed.png&w=3840&q=75)
Transcribed Image Text:Question
Part A
Albert Trading Limited used the statement of financial position approach to estimate the
impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed
that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The
Allowance for Impairment has a debit balance of $6,200 prior to adjustment.
Required:
(Explanation of the Journal Entry is not required)
Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable.
Part B
On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading,
determined that a receivable from Peter Lee in the amount of $3,400 was worthless.
Required:
(Explanation of the Journal Entry is not required)
Prepare the joumal entry required by Albert Trading in this situation.
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