Question (2) 12 Marks: Near the end of the year 2021 You have been assigned a Financial Consultant Position for PETRA Company. Your first Task was to evaluate the Net Realizable cash value of PETRA Accounts Receivable. PETRA Company used to assign a 5% of its Credit Sales as Bad debt expense. Find Allowance for Doubtful Accounts & Bad Debt Expense using all applicable accounting methods, Combined with the Adjusting Entries for 2021. [8Marks] Final recommendation for the best method to apply with brief justification is expected via Official Report. [4Marks] Good LUCK with your New Position Description Accounts Receivable Balance31/12/2020 275000 Allowance for Doubtful Accounts Balance 31/12/2020(Credit) 4800 Credit Sales During 2021 345000 Collection During 2021 135000 Written off Accounts 10000 An aging of the accounts receivable for the Year 2021 revealed the following: Estimated Percentage Description Amount Total of Uncollectible Current Accounts 200000 1% 1-30 days past due 150,000 2% 31-60 days past due 80,000 3% 61-90 days past due 20,000 10% 35,000 40% Over 90 days past due Total counts were The Written off Accounts has been written off after Aging Table has been accomplished, & accour chosen among the (Over 90 days Past due) class. Page 5 of 8 || Accounts Receivable Aging Allowance for Doubtful Accounts Bad Debit exp. EB Accounts Receivable AR Allowance for Doubtful Accounts AR Net Book value 5% %Sales Allowance for Doubtful Accounts Bad Debit exp. EB Accounts Receivable AR Allowance for Doubtful Accounts AR Net Book value Page 6 of 8 || Adjusting Entries Date Account Titles and Explanation Page 7 of Debit Crede || G x, x Po Editing Dictate Editor Reuse Open - Aa A A 2 Grammarly 55 Files Editor Reuse Files Grammarly Styles Voice Question (2) 12 Marks: Near the end of the year 2021 You have been assigned a Financial Consultant Position for PETRA Company. Your first Task was to evaluate the Net Realizable cash value of PETRA Accounts Receivable. PETRA Company used to assign a 5% of its Credit Sales as Bad debt expense. Find Allowance for Doubtful Accounts & Bad Debt Expense using all applicable accounting methods, Combined with the Adjusting Entries for 2021. [8Marks] Final recommendation for the best method to apply with brief justification is expected via Official Report. [4Marks] Good LUCK with your New Position Description $ Accounts Receivable Balance31/12/2020 275000 4800 Allowance for Doubtful Accounts Balance 31/12/2020(Credit) 345000 Credit Sales During 2021 Accessibility: Investigate Font ed States) V Paragraph 3. O Styles e >> D Focus Design Layout References Mailings Review View 11 abx, x Po A Font Help Grammarly Table Design Layout A 0 G Styles Editing Dictate Editor Reuse Aa A A >
