The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues to maintain the sameprovision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off.The following two transactions have just been recorded in preparation for finalising the financial statements for the year ending31/10/2020:NoSelect one:O a. £1,560O b. £3,240O c.£4,920O d. £1,68012ASSETS-3,000(tradereceivables)+3,000(provision for doubtfuldebts)-1,320(provision for doubtfuldebts)EXPENSES+1,320(bad debtexpense)(OP) EQUITYREVENUESLIABILITIESWhat was the "provision for doubtful debts" balance shown on the business's Statement of Financial Position as at 31/10/2019?

A counter account termed as an allowance for doubtful accounts nets against the total receivables…

The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues provision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off. The following two transactions have just been recorded in preparation for finalising the financial statements for the y 31/10/2020:

The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues provision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off. The following two transactions have just been recorded in preparation for finalising the financial statements for the y 31/10/2020:

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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Amounts 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
1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) 2. PUColowing is a summary of account receivable and related accounts for three SHOT ON POCO F2 PRO yedis for 1aPR9ly Entererice the financial vear ends 30 Apsl each year.
1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed ii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
Agogo Trading has the following account balances as at 30 June 2019. RM Account Receivable 200,000 Provision for doubtful debt 6,000 On 30 June 2019, the following adjustment have to be made: Debts of RM500 are to be written off as bad One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account Statement of Profit or Loss (extract) Statement of Financial Position (extract) 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. Year ended 30 April Account receivable as at 30 April (before writing off bad debts) RM Bad debts written off RM Provision for doubtful…
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
1. Agogo Trading has the following account balances as at 30 June(2019. RM Account Receivable Provision for doubtful debt 200,000 6,000 On 30 June 2019) the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount Dt bad debt Cr. AC reccivable 500 500 owed S bad debt recovery iii. Provision for doubtful debts is 2% of the outstanding accounts receivables 200,000 -41000 Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) 100
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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 profit and loss account for 31 December 2021?a) £6,376b) £16,796cc) £27,576 d) £10,600
Agogo Trading has the following account balances as at 30 June 2019. RMAccount Receivable 200,000Provision for doubtful debt 6,000On 30 June 2019, the following adjustment have to be made:i. Debts of RM500 are to be written off as badii. One of the entities with accounts receivable whose debts had previously beenwritten off as bad sent a cheque for RM1,000 in full settlement of the amountowediii. Provision for doubtful debts is 2% of the outstanding accounts receivablesRequired:For the year ending 30 June 2019 show the:a) Provision for doubtful debts accountb) Statement of Profit or Loss (extract)c) Statement of Financial Position (extract)
ook int ences During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the beginning of the year, Accounts Receivable, Net of Allowance was $93,500. At the end of the year, after the Bad Debt Expense adjustment was recorded but before any bad debts had been written off, Accounts Receivable, Net of Allowance was $70,000. Required: 1. Assume that on December 31, 2020, accounts receivable totalling $10,000 for the year were determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio 2. Assume instead that on December 31, 2020, $11,000 of accounts receivable was determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio