(a) UniText started a business buying and selling tertiary textbook on 1 January 2018. At the end of the next three years, its figures for accounts receivables, before writing off any bad debt, were as follows: Year End RM 31 December 2018 30,000 31 December 2019 38,000 31 December 2020 4,750 Bad debt to be written off are as follows: Year End 31 December 2019 2,100 31 December 2020 750 The allowance for doubtful debt for each year is 5% of accounts receivables Required: Prepare the following for the Year Ended 2019 and 2020: (i) Allowance for doubtful debt accounts. (ii) Bad debt accounts. (iii)Statement of Profit or Loss extract for the year ended 2019 and 2020.

(a) UniText started a business buying and selling tertiary textbook on 1 January 2018. At the end of the next three years, its figures for accounts receivables, before writing off any bad debt, were as follows: Year End RM 31 December 2018 30,000 31 December 2019 38,000 31 December 2020 4,750 Bad debt to be written off are as follows: Year End 31 December 2019 2,100 31 December 2020 750 The allowance for doubtful debt for each year is 5% of accounts receivables Required: Prepare the following for the Year Ended 2019 and 2020: (i) Allowance for doubtful debt accounts. (ii) Bad debt accounts. (iii)Statement of Profit or Loss extract for the year ended 2019 and 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9E: Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton...

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Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: During 2019, sales on credit amounted to 575,000, 557,400 was collected on outstanding receivables and 2,600 of receivables were written off as uncollectible. On December 31, 2019, Shell on estimastes its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheltons estimate of bad debt expense for 2019. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 3. Compute Shelton's receivables turnover. (Round to one decimal place.) 4. It Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018
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Al Hajar Co. provides you the following account balances for the year ended on 31 December 2019. Sales Revenue OMR 100,000 Cr. Accounts Receivable OMR 25,000 Dr. Allowance for Doubtful accounts OMR 1000 Cr. Scenario 1 Bad debts are estimated based on the aging schedule given below Aging class Receivable Balance (OMR) Estimate % of uncollectible 0–30 days 15,000 10 31–60 days 5,000 15 61–90 days 3,500 20 Over 90 days 1,500 25 Actual bad debt - OMR 1,100 and amount recovered - OMR 800. Scenario 2 Estimated amount of bad debts - 12% of receivables, Actual bad debt - OMR 1,500 and amount recovered later on - OMR 900. Scenario 3 Estimated amount of bad debts - 3.5% of Sales, Actual bad debt - OMR 1,300 and amount recovered - OMR 1000. Required: For each scenario given above; a)Estimate the uncollectible amounts. b)Pass adjusting entry to record the estimated uncollectible. c)Pass all the journal entries for actual write off and recovery…
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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. Provision for Bad debts written off Year ended 30 Account receivable doubtful debt as at 30 April (before writing off bad debts) RM April RM Nil 2% 70 70,000 61,000 83,000 2017 6. 2% 1,000 3,000 2018 2% 2019 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)
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
SCENARIO #1 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. Yolandi's management has estimated that 1.5% of sales will be uncollectible. For the end of 2019, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense Allowance for doubtful accounts For the end of 2019, what is the company's net realizable value? 12/31/2020: During 2020, S10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi's management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company's net realizable value?
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