1. The provision for bad debt is to be adjusted to 10% of debtors.

Debtors 45,000

Provision for bad debts 8,000

How would I know when a provision for bad debt is increasing or decreasing. provide an explanation for increasing and decreasing.

Dr Cr

2. Fixtures and Fittings 35,000

Provision for depreciation- fixtures and fittings 6,000

Motor Vehicle 65,000

Provision for depreciation- Motor Vehicle 12,000

Calculate:

Fixtures and fittings are to be depreciated using the straight line method at a rate of 10% per annum, and the reducing balance method is to be used to depreciate motor vehicles at a rate of 20% per annum.

Cr

3. Rental income (from Jimmy Choo) 7,200

Calculate:

Vera rented Jimmy Choo a small section of the store for $500 per month; he rented the space for the entire year accounting year.

Dr

4. Insurance 7,500

Calculate:

The insurance expense amount represents the total paid for the period March 1, 2019, to May 31, 2020