Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial statement hrases 7456202. Required: Prepare a statement of profit or loss and other comprehensive income, a statement of changes in equity for Sireal Products
Financial statement hrases 7456202. Required: Prepare a statement of profit or loss and other comprehensive income, a statement of changes in equity for Sireal Products Berhad for the year ended 31 December 2015 and a statement of financial position as at that date in a form suitable for publication Notes to the financial statement are not required. (18 marks) 2. Prepare joumal entries required to reflect item (d) above. (2 marks) Tinance cost (TOTAL: 20 MARKS) QUESTION 2 The following situation relates to the credit sales, collection of accounts receivable and write-off policy for Luxe Trading Sdn. Bhd. for the year ended 31 December 2015. Luxe Trading made a credit sales of RM6,450 to a customer, Bloom. The sales were made on 15 March 2015 and goods were delivered to Bloom, along with invoice for RM6,450, credit term, 2/15, n/45. Luxe Trading has a policy to write-off its accounts receivable after 180 days from the invoice date. On 15 September, after maximum attempts to collect from Bloom failed, his balance of RM6,450 was written-oft as uncollectible At 31 December 2015, the ledger balances relating to the accounts receivable and the Allowance for doubtful account before the adjustment for write-off are as follows finance payable RM Accounts receivable 548,250 Allowance for doubtful account 12,028 Past experience of the company suggests 3% of account receivable proves to be uncollectible and bad debt expense is provided at year end 31 December 2015. On 31 December 2015, the company received a payment of RM6.450 from Bloom, along with a letter apologising for the delay. Required: a. Prepare the journal entries to record the recovery of RM6,450 from Bloom Show where the recovery of bad debts appear on the financial statement. (4 marks) b. Calculate the bad debt expense at 31 December 2015. Prepare the journal entries to record the bad debt expense. (4 marks) c. Show how the Accounts receivable and Allowance for doubtful account appear on the statement of financial position at 31 December 2013 (2 marks) (TOTAL: 10 MARKS)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started