Required Required 2 ring for busineStudy Get when they can do with the new Allowance for one who with the Required Ja. Are for the Mae Part 2 Dell Outer 16 months 11.8.2011 6 - 12 months 9.10.2016 over 12 months 1.200.000 21.00 Balance Sheet Extract (only show accounts related to this) Towaben able to ascerta Merevenues for the past your con Credit Sales and Instalacions 164,700 - Cash Sales and Installations $4,200 Sales Returns $ 7,200 Creatures are only availaw on credit sales) As at 30 June Prior to Write off and Adjustment After Adjustment Required 3 b.(edit Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment Required 2[editi Explain to Max that he has misunderstood what you meant when you told him to record bad debts "when they occur" and why his entry does not fit with the allowance method of accounting for bad debts that he is currently using. (Note - In Case Study 2 you created an Allowance for Doubtful Debts account with a $800 balance, Max has not touched this account since). In your explanation point out to Max the differences between the direct write-off and allowance methods and why the allowance method is preferred. Max now feels he has a better grasp of why the allowance method he is using is a good option but is still not sure how it actually works. Max recalls something about a net sales method and ageing receivables from his studies but doesn't know how to apply them. You have been able to gather together the following information about Max Armim Torque's debtors from Max's records, The details below have already taken into account the write off in Part 2 AGE OF ACCOUNTS AMOUNT UNCOLLECTABLE (incl. GST) ESTIMATE % 0 - 1 month 21,725.00 2 1 -6 months 18,928.80 11 6-12 months 9,880.20 46 over 12 months 1.980.00 92 52.514.00 You have also been able to ascertain that Max's revenues for the past year consist of - Credit Sales and Installations $68,700 - Cash Sales and Installations $48,200 - Sales Returns $ 7,200 (returns are only available on credit sales) - Industry data shows that 6% of credit transactions are likely to go bad. Required 3[edika Max has asked you to update his accounts below to show him how he should have entered the transaction in part 2. Then show the impact on Max's general ledger and Balance Sheet if the above information was applied using: 3. a. The ageing method is applied 3. b. The net sales method is applied Required 3 a.[edit Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) Required 2 [editi Explain to Max that he has misunderstood what you meant when you told him to record bad debts when they occur" and why his entry does not fit with the allowance method of accounting for bad debts that he is currently using. (Note - In Case Study 2 you created an Allowance for Doubtful Debts account with a $800 balance, Max has not touched this account since). In your explanation point out to Max the differences between the direct write-off and allowance methods and why the allowance method is preferred. Max now feels he has a better grasp of why the allowance method he is using is a good option but is still not sure how it actually works. Max recalls something about a net sales method and ageing receivables from his studies but doesn't know how to apply them. You have been able to gather together the following information about Max Armim Torque's debtors from Max's records, The details below have already taken into account the write off in Part 2 AGE OF ACCOUNTS AMOUNT UNCOLLECTABLE (incl. GST) ESTIMATE % 0 - 1 month 21,725.00 2 1 -6 months 18,928.80 11 6-12 months 9,880.20 46 over 12 months 1.980.00 92 52.514.00 You have also been able to ascertain that Max's revenues for the past year consist of - Credit Sales and Installations $68,700 - Cash Sales and Installations $48,200 - Sales Returns $ 7,200 (returns are only available on credit sales) - Industry data shows that 6% of credit transactions are likely to go bad. Required 3 lediti Max has asked you to update his accounts below to show him how he should have entered the transaction in part 2. Then show the impact on Max's general ledger and Balance Sheet if the above information was applied using: 3. a. The ageing method is applied 3. b. The net sales method is applied Required 3 a.[editi Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment Required 3 b.[edita Accounts Receivable Date Details Post Ref Debit Credit Balance Allowance for Doubtful Debts Post Ref Debit Credit Date Details Balance Doubtful Debts Expense Post Ref Debit Credit Date Details Balance Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment SAShdent Home Page X th Topic - Receivables view.php?pageid-99728 Required 2 hotelowhat you mean when you to record badebis when they Doubleshootoudheden in your artin AGE OF ACCOUNTS AMOUNT UNCOLICE Gan month. over 12 months 3.00.00 destes and on 300 Deums are only one Industry data shows that of creditations are to be Required 3 The ageing who is 200 200 wabon w thatatoeditacions we key to go bad to update it accounts below to show how he should have entered then the show the actor generaler and balance sheet if the above information was applied using sing method is applied methods pied Accounts Receivable bate Details POR Debit Credit T Allowance for the batea poster Credit Dub Debes Expense bute Details Poste Debit Credit balance Batwe Sheet Extraction show related to this topic) As a JO Adjustment Balance sheet rendy showered to this topic Aston Prior to write and Ant Aher Adjust Required 3b pate Detail Credit All for bate butas D ce alance Dobbes pense Debat Date Details Crede lance Balance Sheet Extract only show accounts related to this topic As at 10 lune Prior to write off and Adjustment Alter Adament Required Required 2 ring for busineStudy Get when they can do with the new Allowance for one who with the Required Ja. Are for the Mae Part 2 Dell Outer 16 months 11.8.2011 6 - 12 months 9.10.2016 over 12 months 1.200.000 21.00 Balance Sheet Extract (only show accounts related to this) Towaben able to ascerta Merevenues for the past your con Credit Sales and Instalacions 164,700 - Cash Sales and Installations $4,200 Sales Returns $ 7,200 Creatures are only availaw on credit sales) As at 30 June Prior to Write off and Adjustment After Adjustment Required 3 b.(edit Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment Required 2[editi Explain to Max that he has misunderstood what you meant when you told him to record bad debts "when they occur" and why his entry does not fit with the allowance method of accounting for bad debts that he is currently using. (Note - In Case Study 2 you created an Allowance for Doubtful Debts account with a $800 balance, Max has not touched this account since). In your explanation point out to Max the differences between the direct write-off and allowance methods and why the allowance method is preferred. Max now feels he has a better grasp of why the allowance method he is using is a good option but is still not sure how it actually works. Max recalls something about a net sales method and ageing receivables from his studies but doesn't know how to apply them. You have been able to gather together the following information about Max Armim Torque's debtors from Max's records, The details below have already taken into account the write off in Part 2 AGE OF ACCOUNTS AMOUNT UNCOLLECTABLE (incl. GST) ESTIMATE % 0 - 1 month 21,725.00 2 1 -6 months 18,928.80 11 6-12 months 9,880.20 46 over 12 months 1.980.00 92 52.514.00 You have also been able to ascertain that Max's revenues for the past year consist of - Credit Sales and Installations $68,700 - Cash Sales and Installations $48,200 - Sales Returns $ 7,200 (returns are only available on credit sales) - Industry data shows that 6% of credit transactions are likely to go bad. Required 3[edika Max has asked you to update his accounts below to show him how he should have entered the transaction in part 2. Then show the impact on Max's general ledger and Balance Sheet if the above information was applied using: 3. a. The ageing method is applied 3. b. The net sales method is applied Required 3 a.[edit Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) Required 2 [editi Explain to Max that he has misunderstood what you meant when you told him to record bad debts when they occur" and why his entry does not fit with the allowance method of accounting for bad debts that he is currently using. (Note - In Case Study 2 you created an Allowance for Doubtful Debts account with a $800 balance, Max has not touched this account since). In your explanation point out to Max the differences between the direct write-off and allowance methods and why the allowance method is preferred. Max now feels he has a better grasp of why the allowance method he is using is a good option but is still not sure how it actually works. Max recalls something about a net sales method and ageing receivables from his studies but doesn't know how to apply them. You have been able to gather together the following information about Max Armim Torque's debtors from Max's records, The details below have already taken into account the write off in Part 2 AGE OF ACCOUNTS AMOUNT UNCOLLECTABLE (incl. GST) ESTIMATE % 0 - 1 month 21,725.00 2 1 -6 months 18,928.80 11 6-12 months 9,880.20 46 over 12 months 1.980.00 92 52.514.00 You have also been able to ascertain that Max's revenues for the past year consist of - Credit Sales and Installations $68,700 - Cash Sales and Installations $48,200 - Sales Returns $ 7,200 (returns are only available on credit sales) - Industry data shows that 6% of credit transactions are likely to go bad. Required 3 lediti Max has asked you to update his accounts below to show him how he should have entered the transaction in part 2. Then show the impact on Max's general ledger and Balance Sheet if the above information was applied using: 3. a. The ageing method is applied 3. b. The net sales method is applied Required 3 a.[editi Accounts Receivable Post Ref Debit Credit Balance Date Details Allowance for Doubtful Debts Post Ref Debit Credit Balance Date Details Doubtful Debts Expense Post Ref Debit Credit Balance Date Details Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment Required 3 b.[edita Accounts Receivable Date Details Post Ref Debit Credit Balance Allowance for Doubtful Debts Post Ref Debit Credit Date Details Balance Doubtful Debts Expense Post Ref Debit Credit Date Details Balance Balance Sheet Extract (only show accounts related to this topic) As at 30 June Prior to Write off and Adjustment After Adjustment SAShdent Home Page X th Topic - Receivables view.php?pageid-99728 Required 2 hotelowhat you mean when you to record badebis when they Doubleshootoudheden in your artin AGE OF ACCOUNTS AMOUNT UNCOLICE Gan month. over 12 months 3.00.00 destes and on 300 Deums are only one Industry data shows that of creditations are to be Required 3 The ageing who is 200 200 wabon w thatatoeditacions we key to go bad to update it accounts below to show how he should have entered then the show the actor generaler and balance sheet if the above information was applied using sing method is applied methods pied Accounts Receivable bate Details POR Debit Credit T Allowance for the batea poster Credit Dub Debes Expense bute Details Poste Debit Credit balance Batwe Sheet Extraction show related to this topic) As a JO Adjustment Balance sheet rendy showered to this topic Aston Prior to write and Ant Aher Adjust Required 3b pate Detail Credit All for bate butas D ce alance Dobbes pense Debat Date Details Crede lance Balance Sheet Extract only show accounts related to this topic As at 10 lune Prior to write off and Adjustment Alter Adament