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All Questions are compulsory Ouestion No 1: Al Taala electronics is a leading store in electronics in Nizwa. The sales of the business are low

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All Questions are compulsory Ouestion No 1: Al Taala electronics is a leading store in electronics in Nizwa. The sales of the business are low Mr Khamis the owner is getting concern about cash inflows. If the cash is not received on time the whole working capital cycle gets badly affected Mr Khamis appoints you on 1 Feb 2019 as a receivables manager to accelerate the cash receipts from credit sales. He wants you to show him the actual position of his accounts receivables at the end of every month. You have collected details from the accounts department relating to sales and receivables. The credit sales of Jan were RO 285,000 and Accounts receivables at RO 165,120 Now it is February and you have started to work on getting the details of ageing receivables. You find that one of our receivable Mr Miskeen on whom RO 1500 was due has been moved to the U.K. This amount has been outstanding since last 8 months. On discussion with Mr Khamis it was decided to remove the name from the Accounts as uncollectable. During the month of February. Total sales was for RO 285450 of which credit sales were RO 251,500 and the collections made from receivables were RO 196,900. During the March credit sales were RO 260,500 and the collection from Accounts receivable were RO 209,000 In the same month some of your receivable on whom RO 7000 was due on 18th March did not paid the amount but accepted 40 days note at 7% interest. This was not recorded in the accounts. From this month. you have decided to follow the allowance method for recording uncollectable for doubtful debts. You decided to make allowance @5% on closing Accounts receivable. In the month of April on the due date, the note receivable for RO 4000 was honoured. The other was dishonoured. (15 Marks) You are required to pass the required Journal entries to record the transactions. **note: Working notes form part of the

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