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Question - A company has a fortnightly payroll of $200,000. On average, 50% of the employees take their full entitlement of two weeks sick leave, 30% take half of their full entitlement and 10% take only one day of sick leave per year.
The company deducts 20% income tax and 10% for superannuation. All deductions are paid out by the 15th of the following month.
Assume the pay period ends on Friday 3rd July and the financial year ends on 30th June.
Required - How much is the salaries expense at 30th June?
A. $200,000
B. $60,000
C. $140,000
D. $100,000
How could manage the situation to collect the amount of account receivables and how would you account for uncollectible accounts receivable
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