Q1. Discuss with your own examples the two methods of accounting for receivables and the two methods for estimating bad debts. (Note: Examples must include Journal entry)

Q2. X Company has the following receivables classified into individually significant and all other receivables.

Individually significant P Company Q Company R Company S Company All other receivables	$ 65,000 95,000 75,000 35,000	270,000 425,000
Total receivables.		695,000

X company determines that Ps receivable is impaired by $20,000, and Ss receivable is totally impaired. Both Qs and Rs receivables are not considered impaired. X company also determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.

Required: Calculate the total impairment on accounts Receivable