Canucks plc has trade receivables of £424,400 at 31 December 2021. At 31 December 2020 the allowance for doubtful debts was £10,600. For 31 December 2021, the accountant wants the allowance for doubtful debts to be 4% of trade receivables. What is the charge to profit and loss account for 31 December 2021?
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Canucks plc has trade receivables of £424,400 at 31 December 2021. At 31 December 2020 the allowance for doubtful debts was £10,600.
For 31 December 2021, the accountant wants the allowance for doubtful debts to be 4% of trade receivables.
What is the charge to
a) £6,376
b) £16,796c
c) £27,576
d) £10,600
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- Ameera Enterprise had a balance on its allowance for doubtful debts of RM26,250 as at 31 December 2019. Allowance for doubtful debts was estimated at 5% on account receivable. On 31 December 2020, the balance of its net accounts receivable was RM550,000. Calculate the amount of doubtful debts to be shown in the statement of profit or loss for the year ending 31 December 2020 O RM2,500 O RM25,000 O RM1,250 O RM27,500A.Yasoplc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m.Yasoplc’s trade receivables ledger includesa large number ofcustomers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). •Describe substantive procedures the auditor should perform to obtainsufficientand appropriate audit evidence in relation toYasoplc’s trade receivables.At 30 June 2018 a company’s allowance for receivables was £39,000 At June 2019, trade receivables totalled £517,000. The company decided to write off debts totalling £37,000. The receivables allowance was to be adjusted to an amount equals to 5% of the trade receivables based on the post events. What figure should appear in the statement of profit and loss account for the year ended 30 June 2019?
- Mostack has the following trade receivables position: 31 December 2020 31 December 2021 £ £Trade receivables 111,500 154,100Allowance for doubtful debts 2% 3%For the year ended 31 December 2021 one of the customers who owed Moston Trading £4,100, which is included in the trade receivables balance, has been declared bankrupt and no monies will be received from that customer.The figure that would appear in the income statement for the year ended 31 December 2021 in respect of bad and doubtful debts is:a) £4,100b) £4,500c) £2,230d) £6,370Moston Trading has the following trade receivables position: 31 December 2020 31 December 2021 Trade receivables 111,500 154,100 Allowance for doubtful debts 2% 3% For the year ended 31 December 2021 one of the customers who owed Moston Trading £4,100, which is included in the trade receivables balance, has been declared bankrupt and no monies will be received from that customer. The figure that would appear in the income statement for the year ended 31 December 2021 in respect of bad and doubtful debts is: a) £4,100 b) £4,500 c) £2,230 d) £6,370Amounts owing by customers amounted to £650,000 at 31 December 2020. The business sets the provision for doubtful debts at 2.5% of trade receivables. The provision for doubtful debts at 31 December 2020 amounted to £19,340.The final adjustment relating to doubtful debts in the accounts for the year ended 31December 2020 will be:a) Dr Doubtful debts charge 16,250 Cr Trade receivables 16,250b) Dr Doubtful debts charge 3,090 Cr Doubtful debts provision 3,090c) Dr Doubtful debts provision 3,090 Cr Doubtful debts charge 3,090d) Dr Doubtful debts charge 16,250 Cr Doubtful debts provision 16,250
- COULD YOU PROVIDE SOME MORE DETAIL WHEN PROVIDING THE ANSWER, THANK YOU Question 1A. Yaso plc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc’s trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). PART A Requirement:• Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc’s trade receivables. PART B. According to ISA 260, it is important for auditors to communicate throughout the audit with those charged with governance. PART B Requirement: • Explain why it is important for auditors to communicate with those chargedwith governance. • Identify three examples of matters which the auditor may communicate to those chargedwith governance.A. Yaso plc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc's trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). Requirement: Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc's trade receivables.At 30th June 2018 a company’s provision for doubtful debts was £78,000. At 30th June 2019 debtors (receivables) totalled £1,034,000. It was decided to write off debts totalling £74,000 and to adjust the provision to the equivalent of 5% of remaining debtors (receivables). What figure should appear in the income statement for bad and doubtful debts expense for the year ended 30 June 2019? £74,000 £44,000 £47,700 £104,000
- XYZ Company showed the following account balances as of December 31, 2020 : Net sales -P400,000; Accounts receivable - P150,000; and Allowance for bad debts - P10,000. The policy of the business states that allowance for bad debts should be 7% of net sales, how much is the doubtful accounts expense on December 31, 2020?On 31 December 2019, a company's receivables totalled £400,000 and allowance for receivables of £50,000 had been brought forward for the 1 December 2019. It was decided to write off debts totalling £38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables as at 31 December 2019 What charge for receivables expenses should appear in the company’s statement of profit and loss for the year ended 31 December 2019?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
