CASE1

QUESTION1

Maslow Corporation at the end of 2019 has the following; Debit accounts receivable of AED 160,000 Credit Allowance for doubtful accounts balance 2018 of AED 2,000 Credit Sales revenue of AED 800,000 Debit sales returns and allowances of AED 50,000 Required: 1. If the company is using the percent of net sales method and estimated that 2% percent of net sales in 2019 will be uncollected, what is the amount of the allowance for doubtful accounts? 2. If the company is using the percent of net sales method and estimated that 10% percent of net sales in 2019 will be uncollected, what is the amount of the allowance for doubtful accounts?

CASE 2

QUESTION 2

Using the results of the 2% and 10% of met credit sales above, if the company had an allowance for doubtful accounts balance of AED 6,000 debit what would be the allowance under a) the 2% of net credit sales and b) the 10% of net credit ales?

CASE 3

QUESTION3

Morocco Inc. in 2020 had sales of AED 1,200,000, and an accounts receivable balance of AED 520,000 and an allowance for doubtful accounts of AED 40,000. Required: If the company had a bad debt in 2019 of AED 34,000 1. What would be journal entry to record the bad debt using the direct write off method? 2. What would be journal entry to record the bad debt using the allowance method?