Question
The following information relates to the business of David & Sons Company. The financial year of the company ends at 30 June 2022. Opening balance
The following information relates to the business of David & Sons Company. The financial year of the company ends at 30 June 2022.
Opening balance of Account Receivables$22 200
Opening balance of the Allowances for Doubtful Debts 2 820
Closing Balance of Account Receivables 28 860
Net credit sales during the year 78 000
During the year, $2 160 of account receivables were written off as bad debts. David & Sons Company uses the net credit sales method to estimate doubtful debts. It is estimated that three per cent of the net credit sales will become uncollectable. Ignore GST.
Required:
a) Prepare the following accounts (T-account) at the end of 2022 (7 marks) a. Account Receivables b. Allowances for Doubtful Debts
The following information relates to the business of David & Sons Company. The financial year of the company ends at 30 June 2022.
Opening balance of Account Receivables$22 200
Opening balance of the Allowances for Doubtful Debts 2 820
Closing Balance of Account Receivables 28 860
Net credit sales during the year 78 000
During the year, $2 160 of account receivables were written off as bad debts. David & Sons Company uses the net credit sales method to estimate doubtful debts. It is estimated that three per cent of the net credit sales will become uncollectable. Ignore GST.
Required:
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Audit Studies Behind The Scenes With Theory Method And Nuance
Authors: S. Michael Gaddis
1st Edition
3030100200, 978-3030100209
