Required: Draft journal entries for the adjustments only. Provide narrations. Information: The following was extracted from the records of Maponya Stores on 28 February 2012, the end of the financial period: Mortgage bond: ABSA Bank (12 % p.a.) Land and buildings at cost Accumulated depreciation on buildings Trade debtors Provision for doubtful debts Trading inventory Packing materials Bad debts R 1 350 000 1 000 000 112 500 230 950 4 600 110 200 12 100 1 485 12 600 99 000 143 000 Insurance Salaries Rent income Interest on mortgage bond 67 500 Adjustments: 1. Maponya Stores uses the perpetual inventory system. On 28 February 2012, after a physical stock-take, the following was disclosed: unsold trading inventory was valued at R109 000; and unused packing materials totalled, R1 100. 2. The mortgage bond with ABSA Bank was secured on 1 September 2011. Interest is payable monthly in arrears. 3. Land is valued at R250 000. Land is not depreciated. Buildings are depreciated at 1 p.a. on the diminished balance value.

Required: Draft journal entries for the adjustments only. Provide narrations. Information: The following was extracted from the records of Maponya Stores on 28 February 2012, the end of the financial period: Mortgage bond: ABSA Bank (12 % p.a.) Land and buildings at cost Accumulated depreciation on buildings Trade debtors Provision for doubtful debts Trading inventory Packing materials Bad debts R 1 350 000 1 000 000 112 500 230 950 4 600 110 200 12 100 1 485 12 600 99 000 143 000 Insurance Salaries Rent income Interest on mortgage bond 67 500 Adjustments: 1. Maponya Stores uses the perpetual inventory system. On 28 February 2012, after a physical stock-take, the following was disclosed: unsold trading inventory was valued at R109 000; and unused packing materials totalled, R1 100. 2. The mortgage bond with ABSA Bank was secured on 1 September 2011. Interest is payable monthly in arrears. 3. Land is valued at R250 000. Land is not depreciated. Buildings are depreciated at 1 p.a. on the diminished balance value.

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

What is the adjusted balance of the Allowance for Bad Debts account as of December 31, 2016?
Please help with all answer
Use the following information for A-C On February 1, 2021, Blue Hour Company factored receivables with a a carrying amount of Php2,000,000 to Sweet Night Corporation. Blue Hour assess a finance charge of 3% of the receivables and retains 5% of the receivables. A. Determine the amount of loss on sale to be reported in the income statement of Blue Hour relative to this transaction for February. a. None b. Php60,000 c. Php100,000 d. Php160,000 B. Assume that Blue Hour factors the receivables on a recourse basis,. The recourse obligation has a fair value of Php30,000. The loss to be reported should be a. Php60,000 b. Php90,000 c. Php120,000 d. Php150,000 C. Assume that Blue Hour Company retained significant amount of risks and rewards of ownership on the factored financial asset, what amount of loss from factoring should the company recognize? a. None b. Php60,000 c. Php100,000 d. Php160,000
Provide Correct
Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.
What is the adjusted balance of the Accounts Receivable account as of December 31, 2016?
The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd. Lilydale Ltd Monbulk Ltd $2 950 300 17 100 Sales (net credit) revenue for year Allowance for Doubtful Debts, 1/7/18 Allowance for Doubtful Debts, 30/6/19 Accounts receivable (gross) 1/7/18 Accounts receivable (gross) 30/6/19 $2 204 300 27 100 19780 28 100 722 650 368 000 485 800 384 200 (a) Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences. (b) Compare the success or otherwise of their cash collection policies, given that the average receivables turnover for the industry in which the companies operated is 7. Credit terms for both companies are 2/10, n/30.
Submit it in excel form P9.2
The following debtors control account and debtors list prepared by the inexperienced bookkeeper ofBips Traders. A number of errors and omissions were discovered after an investigation was done.
Help me
GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled the balance on her account by means of an electronic funds transfer. These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? OA. The Debtors Control account will decrease by R7 000. OB. The debtor owed R8 750. OC. The Bank account will be credited with R7 000. OD. The amount received from the debtor was R1 400.
On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…