Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 On 1 Dec 2 0 2 3 , Fruits Pte Ltd ' s trial balance includes the following items: ( i ) In

Question 3
On 1 Dec 2023, Fruits Pte Ltd's trial balance includes the following items:
(i) In the month of December, Fruits Pte Ltd made credit sales of $15,000 and a
cash sale of $5,000.
(ii) The company also collected $18,000 from its accounts receivables in December.
(iii) A review of the Accounts Receivables on 1 Dec 2023 reveals the following:
An aging analysis of the rest of the accounts receivables indicated that an estimated 3% of these
accounts would not be collectible.
The company uses the allowance method to value its accounts receivables.
(a) Journalise the transactions above including the necessary adjusting journal entries for the company to recognize bad debts.
Narration is not required. However, it is important to present all the workings. Round your answers to nearest $.(21 marks)
(b) Determine the net realizable value of the accounts receivable as of 31 Dec. (4 marks)
image text in transcribed

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

Financial Accounting An International Introduction

Authors: David Alexander, Prof Christopher Nobes, Chris W. Nobes

4th Edition

027372164X, 978-0273721642

More Books

Students also viewed these Accounting questions