- QUESTION 3 Total 14 Marks The Asset section of the Balance Sheet of Mercer Enterprises Ltd at the 30th June 20X4 is presented below: S Current Assets Cash at Bank Inventory Accounts Receivable Less Allowance for Doubtful Debts Se 135,666 265,4004 225,790 (12,766) 213,024 614,090 Non-Current Assets Plant & Equipment Less Accumulated depreciation Intangibles 2,250,000 (825.000) 1,425,000 378,000 1.803,000 2.417.090 TOTAL ASSETS Note that where journal entries are needed narrations are not required. 4 Round any calculations to the nearest dollar. Ignore GST. de de 1 de (a) On 30th June 20X5 Mercer Enterprises Ltd reassessed its Allowance for Doubtful Debts account to allow for bad debts that may become uncollectable in the future using the aged receivables method. You are provided with the following aged debtors listing as at the 30th June 20X5. Current 0-30 days 31-60 days 61-90 days 91+ days Debtor Se $ $ $ Se T. Walker 24.0004 15,500 T. Doedee- 8,7214 24,8954 R. Sloane 3,6664 2,991 2,2524 M. Crouch 18.020 P. Seedsman 15,2914 8,0424 D. Talia 3,720 L. Brown 41.7974 12,6334 R. Laird 6,2654 3,722 6,288 9474 B. Smith 9,939 R. O'Brien 8.832 21,0434 J. Butts 7.709 3,0214 4,4764 Mercer Enterprises Ltd has determined that the following rates of uncollectability are to be applied in determining their allowance for bad debts. Current To 30 days-31-60 days 61-90 days 90+ days 1.0% 1.5% 5.0%. 12.5% 30.0% Other Information: During the year bad debts of $8,239 were written off- (Part (a) continued on the next page) de de 1 Required 7 marks Prepare the general journal entry to record the Allowance for Doubtful Debts for Mercer Enterprises Ltd as at 30th June 20X5 using the aged receivables method and the above information. Date Accounts DR CR- E E- El CCTC