Question
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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