Question 4

At the end of their accounting period, on December 2012, Berg Enterprise have reviewed their receivable and found doubtful accounts.

As of December 2013 these doubtful accounts are as follows

Required;

(i) Prepare the doubtful accounts provision at the end of 2012 ) (ii) Prepare the appropriate entries at the end of 2012 (

(iii) Prepare the doubtful accounts provisions at the end of 2013 (iv) Prepare the appropriate entries at the end of 2013

Customer	A/R Balance	Comments	Probable loss
Alban	200	Filed for protection from creditors	25%
Adam	300	Filed for protection from creditors	40%

Customer	A/R Balance	Comments	Probable (real) loss
Alban	200	Filed for protection from creditors	25%
Adam	300	Paid 50 in total settlement of account	250