4. A business had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 January 20X8 the provision for this, brought forward from the previous year, was Tshs 320,000.During the year to 31 December 20X8 the bad debts written off amounted to Tshs 680,000.On 31 December 20X8 the remaining debtors totaled Tshs 1,680,000 and the usual provision for doubtful debts is to be made., You are required to show: (a) The Bad Debts Account for the year ended 31 December 20X8. (b) The Provision for Doubtful Debts Account for the year. (c) Extract from the Profit and Loss Account for the year.

4. A business had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 January 20X8 the provision for this, brought forward from the previous year, was Tshs 320,000.During the year to 31 December 20X8 the bad debts written off amounted to Tshs 680,000.On 31 December 20X8 the remaining debtors totaled Tshs 1,680,000 and the usual provision for doubtful debts is to be made., You are required to show: (a) The Bad Debts Account for the year ended 31 December 20X8. (b) The Provision for Doubtful Debts Account for the year. (c) Extract from the Profit and Loss Account for the year.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...

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A business had always made a provision for doubtful debts at the rate of 4% of debtors. On1 January 20X8 the provision for this, brought forward from the previous year, was £320. During the year to 31 December 20X8 the bad debts written off amounted to £680. On 31 December 20X8 the remaining debtors totalled £16,800 and the usual provision fordoubtful debts is to be made.You are to show:(a) The Bad Debts Account for the year ended 31 December 20X8.(b) The Provision for Doubtful Debts Account for the year.(c) Extract from the Profit and Loss Account for the year.(d) The relevant extract from the Balance Sheet as at 31 December 20X8
The balance in the Debtors Control account at the end of the financial year was R30 000 before the following transactions were recorded: A debtor who owed R4 000 was declared insolvent. His estate paid R60% of the amount owing. The balance of the account must be written off. How much will be reflected as Provision for bad debts" in the statement of financial position, if the provision for bad debts is calculated at 5% of trade debtors? OA. R1 380 OB.R1 420 OC.R1300 Tpe here to search
5. Oriental Company follows the procedure of debiting bad debt expense for 2% of all new sales. Sales for three consecutive years and year-end allowance account balances were as follows: Sales Allowance for Bad Debts 2018 3,000,000 40,000 2019 2,800,000 60,000 2020 3,500,000 80,000 What is the amount of accounts written off in 2020?
Black Company provides for bad debts expense at the rate of 2% of credit sales. The following data are available for 2021: Allowance for doubtful accounts, 1/1/21 (Cr.). . RM 10,500 Accounts written off as uncollectible during 2021. 6,500 Credit sales in 2021. 1,750,000 The Allowance for Doubtful Accounts balance at December 31, 2021, should be O A. RM35,000 O B. RM31,000 OC. RM39,000 O D. RM6,500
Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12k in the allowance for doubtful accounts. If the companh estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expenses recognized for the year? a.) 390k b.) 378k c.) 402k d.) 1,440,000
The beginning balance in the Allowance for Doubtful Accounts is $47767 cr.. During the year a total of $41485 of accounts were written off and $4997 of accounts previously written off were recovered. The company estimates that the ending balance in the Allowance for Doubtful Accounts should be $60647. What is the bad debt expense for the year? Select one: O a. $49368 O b. $60647 Oc. $41485 O d. $36488
3. The following balances have been taken from the unadjusted trial balance of a tradingorganization for the year ended Dec. 31, 2020:Sales (All on credit) Rs. 650,000Sales Return and Allowance (All from credit sales) 20,000Sales Discount 10,000Accounts Receivable 430,000Allowance for bad debt (Cr.) 2000Required:Record and close bad debt expense for the year ended Dec. 31, 2020 under each of the followingassumptions separately:a. Allowance for bad debt was estimated @ 10% of accounts receivable.b. Bad debt expense was estimated @ 1.5% of net credit sales.
The sundry debtors of ABC & Co. are Rs 25,000. The further bad debts are Rs 3,000. The provision for doubtful debts amounts to 2%. Calculate the net debtors to be shown in the balance sheet O a. 21,560 O b. 25,000 OC. 21,780 d. 20,482
Niles Co. has the following data related to an item of inventory: Inventory, March 1 Purchase, March 7 400 units @ $2.10 1,400 units @ $2.20 Purchase, March 16 280 units @ $2.25 Inventory, March 31 520 units The value assigned to cost of goods sold if Niles uses FIFO with periodic inventory is Select one: A. $1,104. • B. $3,448. O C. $1,160. D. $3,392.
2 2. ABC Company uses the percent-of-sales method for estimating bad debts expense. Thecompany's bad debt expense is normally 2% of net credit sales which were $380,000 for theyear. During the year $1,600 was written off. If the Allowance for Bad Debts account had abeginning credit balance of $3,700, what is the balance at the end of the year?A) $7,600B) $8,700C) $7,700D) $9,700
2. The following is a summary of account receivable and related accounts for three years for Tommy Enterprise the financial year ends 30 April each year. Account receivable Provision for doubtful debt Year ended 30 Bad debts as at 30 April (before writing off bad debts) April written off RM RM Nil 2% 70,000 61,000 83,000 2017 2018 1,000 2% 2019 3,000 2% For the year ending 30 April 2017, 2018, 2019, show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) Prepared by: Puan Siti Nor Junita Mohd Radzi Page 1 / 2
(ii) The Trial Balance of Ammar Trading shows the following balance:, Dr Cr Trade Receivable 60,000 Allowance for doubtful debt 1,000 The allowance for doubtful debt is estimated at 5% per annum. Required: 1. Express the journal entry for the adjustment of allowance for doubtful debt.