The following information is available for Beta, a trader, for the year ended 31 March 2022. Trade receivables at 31 March 2022 - R119,750 Provision for doubtful debts at 1 April 2021 - R2, 528 2 Bad debts for the year ending 31 March 2022 were R2,050. No entry has yet been passed. Further to this the company policy is to provide for a doubtful debt of 2% on trade receivables. (7) Please provide the journal entries to account for: i. The bad debt entry ii. The provision for bad debt entry

The following information is available for Beta, a trader, for the year ended 31 March 2022. Trade receivables at 31 March 2022 - R119,750 Provision for doubtful debts at 1 April 2021 - R2, 528 2 Bad debts for the year ending 31 March 2022 were R2,050. No entry has yet been passed. Further to this the company policy is to provide for a doubtful debt of 2% on trade receivables. (7) Please provide the journal entries to account for: i. The bad debt entry ii. The provision for bad debt entry

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

The following information is available for Beta, a trader, for the year ended 31 March 2022. Trade receivables at 31 March 2022 - R119,750 Provision for doubtful debts at 1
April 2021 - R2, 528 2 Bad debts for the year ending 31 March 2022 were R2,050. No entry has yet been passed. Further to this the company policy is to provide for a
doubtful debt of 2% on trade receivables. (7) Please provide the journal entries to account for: i. The bad debt entry ii. The provision for bad debt entry

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