OAG 160 Accounting for Office Assistant Maximum marks: 100% Question Test 2- Group A Coach Limited the allows receivable. The accounting policy is debts outstanding metod in account for the uncollectible relate the pisim for doubtful debts to the age of The opening balance of the allowance for doubtful debis account in the Balance Sheet January 2021 included a credit balance of $42,000. The company's accounts for the year ended December 2021 are now being prepared. The debts outstanding at Dicember 31 2021 and the required allowance for doubtful debes are as follows Debes outstanding Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 so 90 days past due Over 90 days pot do Required: Amount Alliance for defulde 2,050,000 125 971,000 2.00 207,000 650 100 34,000 3.394,000 68.00 132,000 a) Fill in the following statement to calculate the amount of allowance for doubtful debts account for the year ended December 31 2021 Statement to calculate the amount of allowance required on December 31, 2021 Debts outstanding Amount (5) % Amount of Allowance Required Not due (under 30 days) 2,050,000 125 $25.625 1 to 30 days past due 971,000 2.00 $19.420 31 to 60 days past due 207,000 6.50 3.455 61 to 90 days past due 132,000 33.00 3,560 Over 90 days past due TOTAL AMOUNT REQUIRED 34,000 68.00 23.120 $125,120 (30 marks) b) Prepare the Allowance for doubtful debts account for the year ended December 31, 2021 Allowance for doubtful debts account Date 2021 Particulars Amount (5) Date Particulars Amount (S) 2021 Jan 1 Balance b/d 42,000 (20 marks) c) Prepare the journal entry to record the amount of allowance required for the year ended December 31, 2021. Date Particulars Journal (20 marks) d) Show the extracts of the Accounts Receivable in the Balance Sheet of Coach Limited as at December 31, 2021. Current Assets $ S Accounts Receivable Less: Allowance for doubtful debts (30 marks) END OF TEST 2