Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* December 2020 and received RO15,000 towards credit sales. The company had debit balance of RO 5500 and the balance inaccounts receivable accounts RO 40,000.Age of Accounts receivableLess than 5 days5 to 10 days11 to 15 days16 to 20 days21 to 25 days26 to 30 daysAmount5,000Percent1%5%2,0009,0005,00010,0009,000| 40,00015%25%30%50%Totala) Calculate the amount required in the allowance for doubtful debts as on 31* December2021, using accounts receivable method.b) Prepare journal entries for bad and doubtful debtsc) Show the accounting treatment of bad and doubtful debts in income statement and balancesheet.d) Explain how the company can control the aged debts and the process to collect them early.

Name: Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* Decem
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Task 2:Rustaq company has sold goods on credit RO 55,000 on 31* December 2020 and received RO15,000 towards credit sales. The company had debit balance of RO 5500 and the balance inaccounts receivable accounts RO 40,000.Age of Accounts receivableLes

A bad debt expense is reported when a receivable is no longer recoverable due to a customer's…

Business

Accounting

Task 2: Rustaq company has sold goods on credit RO 55,000 on 31“ December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days Percent Amount 5,000 1% 5% 2,000 9,000 5,000 10,000 9 000 15% 25% 30% 26 to 30 davs 50%

Task 2: Rustaq company has sold goods on credit RO 55,000 on 31“ December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days Percent Amount 5,000 1% 5% 2,000 9,000 5,000 10,000 9 000 15% 25% 30% 26 to 30 davs 50%

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

Only typed solution
View Policies Current Attempt in Progress Vaughn Bikes Ltd. reports cash sales of $6,600 on October 1. (a) Record the sales assuming they are subject to 13% HST. (b) Record the sales assuming they are subject to 5% GST and 9.975% QST. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit (a) Oct. 1 (b) Oct. 1 eTextbook and Media List of Accounts
Q3: Salalah company’s recent financial statements showed the following information. Net Sales 250,000 OMR Accounts Receivables 180,000 OMR The management made two estimates for the uncollectible receivables It can be 4.5 % of net sales or It can be 3.2 % of accounts receivables Calculate and record journal entries in each case. If the company had already recognized an allowance amount of 8,000 OMR, make the journal entry. In this question, make the solution only for net sales case
Action Signs recorded credit sales of $10,000 on the gross method. Terms are 2/20, n/30. How would the entry to this sale be recorded? cash decreases by $3,000 sales discounts increase by $200 sales increases by $9,800 accounts receivable increases by $10,000
Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?
PROBLEM SOLVING: 2-1 Accounts Receivables Presented below are unaudited balances of selected accounts of YELLOW Company as of December 31, 2020: Unaudited Bal, 12/31/20 Debit Selected Accounts Credit Cash 500,000 Accounts receivable 1,300,000 Allowance for bad debts 8,000 Net sales 6,750,000 Additional information are as follows: Goods amounting to P50,000 were invoiced for the accounts of UNO Store, recorded on January 2, 2021 with terms n/60, FOB shipping point. The goods were shipped to UNO on December 30, 2020. The bank returned on December 29, 2020, a customer's check for P15,000 marked "NSF", but no entry was made. Goods amounting to P38,000, invoiced for the account of DOS Trading, recorded on December 27, 2020, FOB Destination. The goods were received by DOS on January 3, 2021 After a careful study of YELLOW's past due accounts, it was necessary to write off uncollectible accounts amounting to P25,000. No entry was made yet for this. YELLOW estimates that allowance for bad…
Problem 3 On January 1,2020, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year were P9,000,000. On December 31,2020, what amount should be reported as allowance for uncollectible accounts?
Ringo Company had the following information relating to net credit sales for 20X5: Accounts receivable, Dec. 31, 20X5 PhP. 18,000 dr. Allowance for uncollectible accounts, Dec. 31, 20X5, prior to adjustment 600 cr. Net credit sales during 20X5 95,000 Collections on account during 20X5 87,000 Cash sales during 20X5 27,000 If uncollectible accounts are determined by the aging of receivables to be PhP. 3,450, the amount of net accounts receivable after adjusting entries for 20X5 would be:
Please help to solve the whole question please this is 1 question with 3sub parts. InvisiGuard Ltd sells security doors. Majority of its sales are on credit except small amount of cash sales each year. The accounting records at 30 June 2019 reveal the following. Ignore GST. Credit sales (for the year of 2019) $2,100,000 Cash sales (for the year of 2019) 20,000 Credit sales returns and allowances (for the year of 2019) 80,000 Accounts receivable (balance at 30 June 2019) 593,000 Allowance for doubtful debts (credit balance at 30 June 2019) 2,800 The company’s yearly bad debts expense had been estimated at 2.5% of net credit sales revenue in the past. The management of InvisiGuard Ltd has decided to compare the current method with an ageing of accounts receivable method. The following analysis was obtained with respect to the accounts receivable. Balance % of estimated uncollectable Accounts not yet due $351,200 1 Accounts…
Please help with the following question Q3: Shafer Company has the following accounts in its general ledger atJuly 31: Accounts Receivable $49,000 and Allowance for Doubtful Accounts $3,400. During August, the following transactions occurred. Aug.15Sold $30,000 of accounts receivable to More Factors, Inc. who assesses a 2% finance charge. 25Made sales of $2,500 on Visa credit cards. The credit card service charge is 3%. 28Made sales of $4,000 on Shafer credit cards. Instructions (a)Journalize the transactions. (b)Indicate the statement presentation of service charges. BR,
Please answer following question Q5: Company Name Net Credit Sales Beginning Net Receivables Ending Net Receivables Brown $180,000 $ 5,000 $30,000 Pink $400,000 $52,000 $42,000 Yellow $ 75,000 $ 5,400 $ 5,800 (a)Which company is doing the best job of managing its accounts receivable? Why? Be sure to support your answer with computations. (b)What are your concerns about these companies? BR,
Provide the answer is correct option