User Account

All Pages

Prepare and balance Allowance for Doubtful Debts accounts

Assignment Help Accounting Basics
Reference no: EM132504476

Question - Bad debts and financial statement disclosures

The following transactions relate to the gardening maintenance business of Steve Jones. The balance in the Allowance for Doubtful Debts account on 1 July 2018 was a credit balance of $7440. The bad debts written-off during the year ended 30 June 2019 amounted to $5220. Accounts receivable balances on 30 June 2019 after the bad debts had been written off total $162 960, and a new allowance of 5% of debtors is required. (Ignore GST for the purposes of this exercise.)

Required -

(a) Prepare and balance the Allowance for Doubtful Debts accounts for the year to 30 June 2019.

(b) Show how the above information would be disclosed in: i. the income statement for the year ended 30 June 2019. ii. the balance sheet as at 30 June 2019.

Reference no: EM132504476

Questions Cloud

Explain what you understand by the depreciation expense : Define and explain what you understand by the depreciation expense and accumulated depreciation. On which statement are they reflected
Compute what is the firms cash conversion cycle : What is the firm's cash conversion cycle? Inventory conversion period =50 daysAverage collection period =17 daysPayables deferral period =25 days
Find the minimum variance portfolio combination : The expected return (ER) for Stock A is 45% and the expected return for Stock B is 32% while the standard deviation (SD) for A is 37% and the standard deviation
What are the sources of fluctuation in fund value : How do calculate both the no arbitrage forward price and the prepaid forward price in Canadian dollars for a one year forward contract on the CAD-EUR exchange
Prepare and balance Allowance for Doubtful Debts accounts : Prepare and balance the Allowance for Doubtful Debts accounts. Prepare and balance the Allowance for Doubtful Debts accounts for the year to 30 June 2019
What is the initial cost of the project : After year 4, there will be no further cash flows. If the profitability index is 1.14 and the discount rate is 12%, what is the initial cost of the project?
How to reduce cash conversion cycle : Which of the actions should Reece Windows take if it wants to reduce its cash conversion cycle? Increase average inventory without increasing sales.
What is the npv if the cost of capital : A new building project costs $40,000 and is expected to have positive cash inflows of $8,000 a year for 11 years. What is the NPV if the cost of capital is 15%?
What amount would be shown for bad debts expense : All sales are conducted on a credit basis, What amount would be shown for bad debts expense in the income statement at 30 June 2019

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd