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Calculate the allowance ratio for the year ending 30 June 2021 for Sameera's Accounting Service. Round the percentage change to one decimal place

Calculate the allowance ratio for the year ending 30 June 2021 for Sameera's Accounting Service. Round the percentage change to one decimal place

FINANCIAL ACCOUNTING
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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Calculate the allowance ratio for the year ending 30 June 2021 for Sameera's Accounting Service. Round the percentage change to one decimal place

Sameera's Accounting Services Comparative Balance Sheets As at 30/06/2021 As at 30/06/2020 Current assets Cash Accounts receivable (gross) 124,536 82,145 96,411 (5,200) 173,692 Allowance for bad debts (21,200) Net accounts receivable Inventory Supplies Prepaid rent Total Current assets 152,492 91,211 11,675 7,325 400 275 5000 2,500 294,103 183,456 Non-current assets Equipment Less: Accumulated depreciation 150,000 150,000 (8,000) (16,000) Total non-current assets TOTAL ASSETS 142,000 325,456 134,000 438,103 |Current liabilities Accounts payable Loan payable - Short Term Unearned Revenue 332,100 224,254 10,000 19,579 10,329 Total current liabilities 361,679 234,583 Non-current liabilities Loan payable - Long Term Mortgage Total non-current liabilities 33,000 2,000 7,000 40,000 2,000 236,583 TOTAL LIABILITIES 401,679 Shareholders' Equity Contributed capital Retained earnings Total Shareholder's Equity 20,000 68,873 20,000 6,424 26,424 88,873 TOTAL LIABILITIES & SHAREHOLDERS'S EQUITY 428,103 325,456
Transcribed Image Text:Sameera's Accounting Services Comparative Balance Sheets As at 30/06/2021 As at 30/06/2020 Current assets Cash Accounts receivable (gross) 124,536 82,145 96,411 (5,200) 173,692 Allowance for bad debts (21,200) Net accounts receivable Inventory Supplies Prepaid rent Total Current assets 152,492 91,211 11,675 7,325 400 275 5000 2,500 294,103 183,456 Non-current assets Equipment Less: Accumulated depreciation 150,000 150,000 (8,000) (16,000) Total non-current assets TOTAL ASSETS 142,000 325,456 134,000 438,103 |Current liabilities Accounts payable Loan payable - Short Term Unearned Revenue 332,100 224,254 10,000 19,579 10,329 Total current liabilities 361,679 234,583 Non-current liabilities Loan payable - Long Term Mortgage Total non-current liabilities 33,000 2,000 7,000 40,000 2,000 236,583 TOTAL LIABILITIES 401,679 Shareholders' Equity Contributed capital Retained earnings Total Shareholder's Equity 20,000 68,873 20,000 6,424 26,424 88,873 TOTAL LIABILITIES & SHAREHOLDERS'S EQUITY 428,103 325,456
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