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On 1 June, Alpha Ltd had Accounts Receivable and Allowance for Doubtful Debtsaccounts as below. Ignore GST. Accounts Rec
Posted: Tue Apr 26, 2022 9:50 am
by answerhappygod
- On 1 June Alpha Ltd Had Accounts Receivable And Allowance For Doubtful Debtsaccounts As Below Ignore Gst Accounts Rec 1 (34.8 KiB) Viewed 23 times
On 1 June, Alpha Ltd had Accounts Receivable and Allowance for Doubtful Debtsaccounts as below. Ignore GST. Accounts Receivable 1/6 Balance 110,400 Allowance for Doubtful Debts ) 1/6 Balance 11,000 During June, the following transactions occurred: 1. Accounts receivable collected $31,200. 2. Accounts written off as uncollectable $7,600. Based on an ageing of accounts receivable on 30 June, the accountant determined that the Allowance for Doubtful Debts account should have a credit balance of $18,000 on thebalance sheet as at 30 June. Required: A- Prepare general journal entries to record the two transactions in June and to adjust the Allowance for Doubtful Debts account (6 marks) B- Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June. On 5 July, Beta Ltd, whose $5,000 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection D- A basic difference between the direct write-off and the allowance method of recordingbad debts is that of timing. Explain|