The balance in the Debtors Control account at the end of the financial year wasR30 000 before the following transactions were recorded:A debtor who owed R4 000 was declared insolvent. His estate paid R60% of theamount owing. The balance of the account must be written off.How much will be reflected as Provision for bad debts" in the statement of financialposition, if the provision for bad debts is calculated at 5% of trade debtors?OA. R1 380OB.R1 420OC.R1300Tpe here to search

Formula: Provision for bad debts = Total Debtors balance x Provision for bad debts percentage.

Answered: The balance in the Debtors Control…

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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At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $812, 000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $406 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. Please explain and elaborate!
! Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $812,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $406 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. Note: Leave no cells blank. December 31 February 1 June 5 Assets Liabilities Equity
Angelo’s Outlet used to report bad debt using the balance sheet method and is now switching to the income statement method. The percentage uncollectible will remain constant at 5%. Credit sales figures for 2019 were $866,000, and accounts receivable was $732,000. How much will Angelo’s Outlet report for 2019 bad debt estimation under the income statement method?
1. kgogo Trading has the following account balances as at 30 June 2019. RM 200,000 6,000 Account Receivable Provision for doubtful debt On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
At year-end but before adjustments, the company’s Accounts Receivable and Allowance for Bad Debts balances are ₱98,279 and ₱6,000, respectively. The company maintains 8% of its accounts receivable as possibly uncollectible. How much is the net realizable of accounts receivable, after adjustments?
Hameed Books Store started the business of buying and selling text books on 1 January 2018. At the end of each of the next Three(3) years, his figures for debtors, before writing off any Bad debts, were as follows: 31 December 2018 RM30,000 31 December 2019 RM38,100 31 December 2020 RM4,750 Bad debts to be written off are as follows: 31 December 2018 RMO 31 December 2019 RM2,100 31 December 2020 RM750 The Allowance for Doubtful debts in each year is 5% of outstanding net debtors i.e. after writing off Bad debts. Required: (1) Prepare Hameed Books Store Bad debts expense account and Allowance for Doubtful debts account for financial year 2018, 2019 and 2020. (2) Prepare an extract of the Income Statement and Balance Sheet (under Current Asset section) and, showing the above transactions, for all Three(3) years of the accounting period.
Required Information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $851,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $426 account of P. Park is uncollectible and writes it off as a bad debt. On June 5. Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list Journal entry worksheet 1 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal
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At year-end (December 31), Chan Company estimates its bad debts as 1% of its annual credit sales of $487,500. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. View transaction list Journal entry worksheet 1 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Debit Date General Journal Credit Dec 31
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At the end of its first year of trading, a company has total trade receivables (debtors) of £20,000. The company accountant decides that there is an element of doubt about the ability of some of the trade receivables (debtors) to make payment. The accountant therefore sets up a provision for doubtful debts in the amount of £3,000. During the company's second year of trading, trade receivables (debtors) previously regarded as doubtful, in the amount of £500, succeed in making payment to the company. At the end of its second year of trading, the company has total trade receivables (debtors) of £40,000, including the remaining trade receivables (debtors) identified as doubtful at the end of the first year. On reviewing trade receivables (debtors) at the end of the second year, the company accountant concludes that a total of £4,000 of receivables (debtors) should be classified as doubtful. What is the resultant figure for trade receivables (debtors), after deducting the provision for…

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