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Question - Grey Associates have started its operating in 2019. Information relating to its accounts receivable are given below
Amount of accounts receivables at the end of 2019 was Rs.741000
Amount estimated to be uncollectible for 2019 was 5% of accounts receivable
During 2020 specific customers that were written off as uncollectible was Rs.79000
Amount of accounts receivable at the end of 2020 was Rs.1026000
Amount estimated to be uncollectible for 2020 was 6% of accounts receivable
Requirements -
1. Prepare necessary journal entries relating to accounts receivable for the year 2019 and 2020.
2. Show how accounts receivable would be presented in the balance sheet of 2019 and 2020.
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