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Two questions, Plz answer ASAP, Questions for ACCY112 ACCY112 Spring Session 2016Assignment 1: Week 4 Please answer and submit in handwriting (no computer typing) QUESTION
Two questions, Plz answer ASAP, Questions for ACCY112
ACCY112 Spring Session 2016Assignment 1: Week 4 Please answer and submit in handwriting (no computer typing) QUESTION 1 Hakuna Matata Ltd analysed the estimated uncollectible % based on past records using aging method, and arrived at the following balances at 31 December 2015: Age Estimated uncollectible % Current 2 30 60 days past due 3 61 120 days past due 8 121180 days past due 12 > 180 days past due 25 Total Balance $ 120,000 80,000 30,000 18,000 6,000 254,000 The company records the bad debts using the allowance method. The company has a balance in the Provision for Doubtful debts account, amounting to $1,200 (debit) on 31 December 2015, before any adjustments. Required: a) Calculate the amount of Provision for Doubtful Debts to be available at 31 December 2015. Show all workings. b) Prepare the adjusting entry for estimated bad debts on 31 December 2015. c) If Sales revenue is $200,000 and sales returns is $15,000, and the company uses 5% from its net credit sales to estimate its bad debts, prepare the adjusting entry for estimated bad debts on 31 December 2015. d) Show the journal entry to write off actual bad debts of $1,200 in February 2016 QUESTION 2 On 30 June 2015, the cash at bank account of Jaquie Chen Ltd had a credit balance of $2,204. The bank statement showed a credit balance of $1,650 for the same date. A comparison of the data revealed the following items: Deposits in transit $920 Unpresented cheques $5200 Bank charges not yet recorded in Jackson's books, totaling $86 A returned cheque $538 from a customer X, due to insufficient funds A cheque payment to supplier A of $658 was incorrectly recorded in Jackson's books as $856 supplies expense. Required: (a) Prepare a bank reconciliation statement for Jaquie Chen Ltd as at 30 June 2015. (b) Prepare the general journal entries necessary to bring the cash at bank account into agreement with the adjusted balance on the bank reconciliation statementStep by Step Solution
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