The following trial balance was extracted from the books of Brian Kamau, a sole trader at 31 December 200s. Outstanding electricity bill as at 31 December 2008 (this 3. included in general expenses) amounted to Shs.3, 580. Debtors indlude an irrecoverable amount of Shs.5, 600. A five per cent provision for doubtful debts is to be made on the recoverable debtors. Depreciation is to be provided on the motor vehicle and plant and machinery at the rates of 20% and 25% respectively on the reducing balance method. No depreciation is to be provided on land and building. Shs Shs 4. Capital, 1 January 2008 3,165,620 Purchases 923,600 5. Sales 1,968,160 Purchase retums 5,600 Sales returns 16,160 Discount allowed 18,200 6. Included in the wages and salaries is an amount of shs.62, 000 paid to the domestic workers of Mr. Brian Kamau. 7. Outstanding wages and salaries as at 31 December 2008 amounted to Shs. 24,800. Discount received 14,080 Wages and salaries 622,000 Rates 49,000 Insurance 35,600 General expenses 81,200 Trade debtors 368,000 Required. Trade creditors 322,400 Income statement for the year ended 31 December a) 2008 Bank overdraft 80,400 Stock in trade, 1 January 2008 122,000 1,700,000 1,230,000 Statement of financial position as at 31 December b) 2008. Land and buildings at cost Plant and machinery at cost Motor vehicle at cost 562,000 Drawings 208,200 Cash in hand 40,200 Provision for depreciation: motor vehicle 112,400 Plant & machinery 307,500 5.976,160 5.976.160 Notes: 1. Stock in trade on 31 December 2008 amounted to Shs. 148,400. Activat 2. Rates paid in advance as at 31 December 2008 amounted to Shs, 7000. Go to Set

© T O (@) Say Lee commenced business on 1 January 2010. At year ended 31 December 2010, the accounts receivables balance was RM10,000. To the date, Say Lee found that an additional irrecoverable debt amounting to RM560 were to be written off. In addition, she found that it was necessary to create an allowance for doubtful debt of RM960. During the year ended 31 December 2011, amount totaling RM840 proved to be bad and written off. The balance of account receivable as at 31 December 2011 was RM27,600 (after bad debt written off) it was decided to provide for doubtful debt up to 5% of account receivables. In 2012, RM3,600 debt were written off during the year. As at 31 December 2012 the balance of account receivables was RM24,000 (before bad debt written off). The allowance for doubtful debt was to be maintained at 5% of account receivables. [Say Lee memulakan perniagaan pada 1 Jamuari 2010. Pada tahun berakhir 31 Disember 2010, baki akaun penghuiang adalah RMI0,000. Pada tarikh yang…

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!

On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $122,535; Allowance for Doubtful Accounts, credit balance of $1,198. What amount should be debited to Bad Debts Expense, assuming 7% of outstanding accounts receivable at the end of the current year will be uncollectible?