ACCOUNTS RECEIVABLE ACCOUNTING:

1. Goods sold on cash 10,000

2. Goods sold on credit 45,000

3. Payment received from customer 20,000

4. Bill of exchange was received from the customer 10,000

5. Notes receivable were received from the customer 5,000

6. Goods sold on credit worth 100,000 and discount was given @ 10%

7. Goods returned by credit customers 15,000

8. Payment of received from a customer from whom 20,000 were due, we allowed him a 5% discount on full and final payment.

CONDITION#1 With their past experience they know that every year 15% of the amount due from the customers is not collected.

CONDITION#2 With their past experience they know that every year 1.5% of net credit sales is not collected. Required separately for both the condition: Record the above in journal and then in ledger. Adjusting entry for doubtful debts Amount of Bad debts expense to be shown in income statement Value of Accounts Receivable on the face of Balance Sheet.