CASE STUDY 2: The Super power electricity company provides service during the period and bills its customers for the consumption which amounts to RO 50,000. The utility estimates that 8.5% of its billings will not be collected. During the year, the water utility acquired a new generator costing OMR 8000. The vouchers were approved and payment was settled after one week of purchase. Based on the above information answer the following questions 3 questions (Questions 42-44) If the revenues are reported net of uncollectible, which among the following will be the correct journal entry to record revenue from electric utility services? 54,250 a. Accounts receivable (Debit) Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 50,000 50,000 o b. Accounts receivable (Debit) Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 45,750 41,500 . Accounts receivable (Debit) Allowances for uncollectible (Credit) 4250 utility sales revenue (Credit) 37,250 45,750 O d. Accounts receivable (Debit) Allowances for uncollectibles (Credit) 4250 Electric utility sales revenue (Credit) 41,500 The entry to record payment to vendor is: 8000 O a. Vouchers payable (Debit) Expenses (Credit) 8000 8000 b. Vouchers payable (Debit) Cash (Credit) 8000 8000 O c. Cash (Debit) Vouchers payable (Credit) 8000 8000 d. Expenses (Debit) Vouchers payable (Credit) 8000 The journal entry passed at the time of acquisition of generator is: 8000 a. Equipment (Debit) Cash (Credit) 8000 8000 ob. Vouchers payable (Debit) Equipment (Credit) 8000 8000 OC. Equipment (Debit) Voucher payable (Credit) 8000 8000 O d. Expenditures (Debit) Cash (Credit) 8000