Question one Bata Shos Company sales shoes to vanous schools across Zambia on credit. As at 31 December 2020 Bata Shoe hadtotal sales of K900,000 and total receivables of K75. 300 and a debit balance on its allowance for uncollectable account of K1,000. Below is the summery of Bata Sheer's age analysis as at that date. (Amounts in ZMK) Age Kabwe Kabu ja Chingola Kitwe Total secondary Secondary Secondary boy's secondary Current 6,000 9,000 3,600 18,600 1-30 1,200 18,000 19,200 31-60 4,500 7,500 12,000 Over 60 1,500 15,000, 9,000 25,500 Total 12,000, 10,200 15,000 38,100 75,300 On the basis of past experience, the company has estimated the rates belowas a percentage of the collectible in each age category Current 95% 1-30 days past due 92% 31-60 days past due 85% Over 60 days past due 80% b) Compute the estimated uncollectible amount at the end of the year (4marks) i) Compute the amount of the adjustment for the uncollectible which is to be expensed to the income statement as at 31 December 2020 and show the journal entry for the adjustment (4 marks) Question Two 8 16 24 Manny Company uses the periodic inventory system to account for inventories. Information related to Manny Company's inventory at January 31 is given below: January 1 Beginning inventory 400 units @ K12.00 = K 4,800 Purchase 800 units @ K12.40 9,920 Purchase 600 units @ K12.80 7,680 Purchase 200 units @ K13.20 2,640 Total units and cost 2,000 units K25,040 In the month of January total sales amounted to 1,400 units @ a selling price of K15. Required: i. Show computations to value the ending inventory using the FIFO cost assumption. ii. Show computations to value the ending inventory using the weighted-average cost. iii. Show computations to value the ending inventory using the LIFO cost assumption. iv. What was the total sales revenue for the month? What was the cost of goods sold for each cost assumption method in the month? V. Question three Equipment was acquired on January 1, 2017, at a cost of K75.000. The equipment was originally estimated to have a salvage value of K5.000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2020, using the Double Declining Balance Method. On January 1, 2021, the estimated salvage value was revised to K7.000 and the useful life was revised to a total of 8 years. Required: vi. Calculate the book value at the time of the revision (January 1, 2021). Pass the journal entry for the depreciation in 2021. 1 vii