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Part II (13 marks) Singer Company adjusts its account annually. Below is extracted from the trial balance of the Company as at 31 December, 2021
Part II (13 marks) Singer Company adjusts its account annually. Below is extracted from the trial balance of the Company as at 31 December, 2021 prior to year end adjusting entries. Accounts receivable $335,000 Allowance for impairment $7,300 (Dr) An aging analysis on the probability of uncollectible amount is broken down as follows: % of Amount past due Accounts Receivable uncollectible Not yet due 95,000 1% 1-30 days 150,000 2% 31-60 days 85,000 5% Over 60 days 5,000 10% Required: (a) What is the total estimated uncollectible amount of accounts receivable? (2 marks) (b) Prepare journal entries to record impairment loss of receivable in 2021 using Statement of Financial Position approach. (4 marks) (c) Prepare a partial statement of financial position as at 31 December 2021 on the accounts receivable. (3 marks) (d) Prepare joumal entries to record impairment loss of receivable in 2021 assuming the balance of the Allowance for Impairment account is $7.300 (Cr.) prior to adjustment. (4 marks)
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