Question 5: Hussein Yahya Company adopts the provision method for dealing with bad debts and also uses the accounts rece

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Question 5 Hussein Yahya Company Adopts The Provision Method For Dealing With Bad Debts And Also Uses The Accounts Rece 1 (67.34 KiB) Viewed 77 times

Question 5: Hussein Yahya Company adopts the provision method for dealing with bad debts and also uses the accounts receivable aging method to estimate doubtful debts accounts. On December 31, 2013, the company prepared the following table to analyze the aging of accounts receivables according to their due dates as follows: Days after the due date More than 61 - 90 31 - 60 30-Jan 0 Total 90 15,000 9,000 18,000 45,000 198,000 285,000 Account receivable 18% 10.50% 6% 3% 1.50% Doubtful debt ratio Required: 1 - Determining the required balance for the allowance account for doubtful debts using the debtors' accounts aging method. 2 - Prepare the settlement entry to record bad debts expenses on December 31, 2013 using the balance specified in the previous liability (1), assuming that the previous unadjusted balance of the allowance account for doubtful debts is 600 Qatari riyals debited. 3 - On March 1, 2014, the company decided that the amount of 5,000 Qatari riyals owed by two customers is uncollectible, prepare the journal entry necessary to write off these debts. 4 - On July 1, 2014, the company unexpectedly collected the amount of QR 2000 owed from a customer, which was previously written off in March 2014. Prepare journal entries to record debt recovery. 5 - Prepare the doubtful debts allowance account as it appears in the general ledger with all previous transactions posted to this account. Answer: 97159