Norma Electronics sell its products for cash and on credit. It usually provides 6 % of its
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Question:
Norma Electronics sell its products for cash and on credit. It usually provides of its credit
sales as allowance for bad and doubtful debts.
In the month of April x Norma Electronics recorded $ as sales, of which $
were cash sales. During the year, Norma Electronics determined that $ worth of
invoices will not be recovered and so were writtenoff. During the year, it collected $
which was writtenoff as bad debts in the previous year.
You are required to:
a Provide journal entries based on the information provided by Norma Electronics and
b Provide the closing balance in Allowance for bad and doubtful account, assuming there
was an opening balance of $ in the account.
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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