Beacon Limited had the following trial balance as at 1 January 2019, as shown in the table below:<\/p>
Account Debit $ Credit $ <\/p>
Cash 250 000 <\/p>
Accounts receivable 600 000 <\/p>
Inventory 730 000<\/p>
Prepaid insurance 60 000 <\/p>
Prepaid rent 50 000 <\/p>
Equipment 1 500 000 <\/p>
Allowance for doubtful debts 20 000 <\/p>
Accumulated depreciation 500 000 <\/p>
Accounts payable 700 000<\/p>
Revenue received in advance 120 000 <\/p>
Income tax payable 530 000 <\/p>
Loan 600 000 <\/p>
Share capital 400 000<\/p>
Retained profits 320 000 <\/p>
3 190 000 3 190 000 <\/p>
You are given the following additional information for the year ended 31 December 2019:<\/p>
a) Bad debts of $14,380 were written off.<\/p>
b) It was decided that allowance for doubtful debts should be 5 per cent of accounts receivable.<\/p>
Required: 1) Prepare journal entries for these transactions. (5 marks)<\/p>
2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019: <\/p>
a) Accounts receivable (1 mark) <\/p>
b) Allowance for doubtful debts (1 mark)<\/p>", "transcribed_text": "", "related_book": { "title": "Fundamentals Of Statistics", "isbn": "978-032184460, 032183870X, 321844602, 9780321838704, 978-0321844606", "edition": "4th Edition", "authors": "Michael Sullivan III", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/445.jpg", "uri": "\/textbooks\/fundamentals-of-statistics-4th-edition-445", "see_more_uri": "" }, "free_related_book": { "isbn": "0679891145", "uri": "\/textbooks\/oh-say-can-you-say-di-no-saur-all-about-dinosaurs-37642nd-edition-978-0679891147-302492", "name": "Oh Say Can You Say Di No Saur All About Dinosaurs", "edition": "37642nd Edition" }, "question_posted": "2024-06-28 08:57:51", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/using-the-income-and-expense-account-information-for-trimark-products", "description": "Using the income and expense account information for Tri-Mark Products Inc. listed below, construct an income statement for the year ended 31st December, 2011. 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