Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer Part A and B for below question and show all workings. Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to

Please answer Part A and B for below question and show all workings.

image text in transcribedimage text in transcribed

Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to its customers. The accounting records at 30 June 2020 reveal the following. All amounts shown (except where indicated) include GST. In the past, the company's yearly bad debts expense had been estimated at 2.5% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable: Required A. Prepare the journal entries to adjust the Allowance for doubtful debts at 30 June 2020 under: 1. the net credit sales method 2. the ageing of accounts receivable method. (7 marks) B. Determine the balance in the Allowance for doubtful debts account under both methods. (4 marks) A. (2) B. (1)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ERP Digital License Management Audit And Compliance

Authors: Gangesh Thakur, Jay Kalaimani

1st Edition

1799104079, 978-1799104070

More Books

Students also viewed these Accounting questions