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Trans-Arabian Food Company reports the following information pertaining to its accounts receivable: Current 1-30 270,000 Days Past Due 31-60 61-90 210,000 RS 60,000 Over 90
Trans-Arabian Food Company reports the following information pertaining to its accounts receivable: Current 1-30 270,000 Days Past Due 31-60 61-90 210,000 RS 60,000 Over 90 Rs 30,000 Rs 750,000 Rs Rs The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above: Current receivables outstanding......... Receivables 1-30 days past due Receivables 31-60 days past due Receivables 61-90 days past due .. Receivables over 90 days past due. The company uses a balance sheet approach to estimate credit losses. The company's financial years ends on 30-June-2019 2% 6% 12% 20% 50% Instructions: i. Record the company's uncollectible accounts expense, assuming it has a Rs.5.000 credit balance in its Allowance for Doubtful Accounts prior to making the necessary adjustment. Record the company's uncollectible accounts expense, assuming it has a Rs.6.000 debit balance in its Allowance for Doubtful Accounts prior to making the necessary adjustment
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