$46.000 52. sod The following information relates to Eason Ltd for 2016: Accounts receivable at 31 December 2016 Bad debts written oft Required (state your answer in the space provided) a) What amount of bad debts expense will Eason Ltd report if it uses the direct writeoff method of accounting for bad debts? b) Assume that Eason Ltd decides to estimate its bad debts expense based on 5% of accounts receivable. What amount of bad debts expense will the business record if it has an Allowance for Doubtful Debts credit balance of $1,600 at 31 December 2015? c) Assume the same facts as in part (b), except that there is debit balance of $1150 in Allowance for Doubtful Debts. What amount of bad debts expense will Eason Ltd record? d) What is the weakness of the direct write-off method of reporting bad debts expense? A BEE 3 Eason Led State your answer for each part in in the space al b) d d The following inventory information for the month of July is provided: July 1 Beginning Inventory 20 units at 519 5 380 July 7 Purchases 70 units at 520 1.400 July 22 Purchases 10 units at 522 220 52.000 A physical count of inventory on July 30 reveals that there are 3 units on hand. You are required to answer questions 1 to 5 state your answer in the space provided Question: Answers 1. Using the average cost method, the value of ending inventory is: 2.Using the FIFO inventory method, the amount allocated to cost of sales for July is: 3.Using the FIFO inventory method, the amount allocated to ending inventory for July is: 4. Using the LIFO inventory method, the amount allocated to cost of sales for July is: 5. Using the LIFO inventory method, the amount allocated to ending inventory for July is: the value ofending events 1, the amount allocated to cost of sales for July is the amount located to ending investory for X, the amount allocated to cost of sales for Julys the amount allocated to ending inventory for us 6 11 13 Belle Fashion Pty Ltd completed these inventory transactions in the month of April 2019 presented below: April transactions 4 Purchased inventory on account from a supplier for $3,245 with the terms 2/7,n/30. Sold inventory on account to a customer $2,750, terms 2/7,n/30. The cost of the Inventory sold was $2,200 Paid supplier the amount outstanding for inventory purchased on the 4th April. Received payments from the customer invoiced on 6 April Purchased inventory from a supplier for cash $2,420. Received refund from supplier on cash purchase of 14 April $275 20 Paid freight of $55 in cash to a courier company. The company's chart of accounts reveals the following relevant account listing Cash Sales Revenue Accounts Receivable Discount Received Inventory Discount Allowed Accounts Payable Cost of Sales Freight-in/out 14 16 Required: Prepare journal entries for the above transactions in the records of Belle Fashion Pty Ltd. State your answer in the space provided. Narrations/explanations are not required
