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Question 1: [4 marks] You have the following transactions by Kamal Co. : (a) On July 1, Kamal Co. sold merchandise on account to Malak

Question 1: [4 marks] You have the following transactions by Kamal Co.: (a) On July 1, Kamal Co. sold merchandise on account to Malak Inc. for JD 20,000, terms 2/10, Net/30. (b) On July 8, Malak Inc. returned merchandise worth JD 5,000 to Kamal Co. (c) On July 11, Malak Inc. paid for the merchandise Instructions: 1-On July 1st, the amount of A/R will be reported at the entry, is:

2- On July 11th, the amount of cash to be collected is: .

Question 2: [8 marks]

accounts

Dr

Cr

Account receivables

50000

Allowance for doubtful account

1000

Credit sales

60000

Cash sales

20000

The following balances are reported at Marah Co. records in 31/12/2019 before adjustment:

Instructions: 3- Suppose the company estimates its uncollectible account to be 10% of sales. The balance of allowance for doubtful account to be reported at 31/12/2019 statement of financial position, is:

4- Suppose the company estimates its uncollectible account to be 10% of receivables, the net realizable value at 31/12/2019, is:

5-Suppose the company estimates its uncollectible account to be 10% of receivables. The Bad debt expense to be reported at 2019 income statement, is:

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