Foster's Brewing controls more than 50 percent of the beer market in Australia and owns 40 percent of Molson Breweries of Canada and 100 percent of Courage Limited of the United Kingdom. As an Australian company, it follows Australian GAAP and uses Australian accounting terminology. In the footnotes to its recent annual report, it discloses the information on receivables (all numbers are reported in thousands of Australian dollars).

Required: 1. The account titles used by Foster's are different from those normally used by U.S. companies.

What account titles does it use in place of Allowance for Doubtful Accounts and Bad Debt Expense? 2. Sales on account for Year 2 were $9,978,875. Compute the accounts receivable (trade debtors)

turnover ratio for Year 1 (ignore uncollectible accounts). 3. Compute the provision for doubtful debts as a percentage of current receivables separately for receivables from trade debtors and receivables from others. Explain why these percentages might be different. 4. What was the total amount of receivables written off in Year 2?

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Note 3: Receivables Year 2 Year 1 Current Trade debtors 792.193 999.159 Provision for doubtful debts. (121.449) (238.110) Other debtors 192,330 130.288 Provision for doubtful debts (384) (2.464) Non-current Trade debtors 164.808 200.893 Other debtors 15.094 16.068 Provision for doubtful debts (7.920) (7.400) Note 15: Operation Profit Year 2 Year 1 Amounts set aside to provisions for Doubtful debts-trade debtors (21.143) (53.492) Doubtful debts-other debtors (228) (2.570)