Case No. 4 On November 8, 2019, Jabal Oman LLC sold goods on credit to a customer for OMR 30,000, terms 2/10, n/30. The customer was experiencing difficulty in paying his due. On December 1, 2019, Jabal Oman LLC accepted a ninety day, 3% note of OMR 30,000 from the customer in exchange for extending the payment period of outstanding account receivable.

Question No. 4 You are required to: Prepare journal entries in the books of Jabal Oman LLC for the following transactions:

(i) Credit sales made,

(ii) Acceptance of the note,

(iii) Honoring of the note at the maturity date (if honored),

(iv) Dishonoring of the note at the maturity date (if dishonored).

(v) Explain the internal control procedures that apply to receivables. Case No. 5 Oman wires LLC records show the following results for the year December 31, 2019. Cash sales OMR 1,025,000 Credit sales OMR 1,342,000 Balance of Accounts receivable account on December 31, 2019 OMR 575,000(Dr) Balance of Allowance for doubtful accounts on December 31, 2019 OMR 7,500(Cr) before adjustment Question No.5 You are required to:

(i) Prepare necessary journal entries assuming bad debts are estimated to be;

(a) 2.5% of credit sales (b) 1.5% of total sales

(ii) Prepare Allowance Account under receivables method assuming 6% of accounts receivable at year end is uncollectible.

Also find the amount of Cash Realizable Value on December 31, 2019.

(iii) Show how the balances of Accounts Receivable and Allowance for Doubtful Accounts appear in the

Statement of Financial position as on December 31, 2019 as per part (i) (a) and (b).