Question 974838: The following aged accounts receivable schedule was prepared for Dulax paints at the end of the firms fiscal year on December 31.2010
The Accounts receivable age analysis as at that date is as shown below
Day past due
Customer Current 1-30 days 31-60 days 0ver 60 days Total balance
A & M 63,000 64,000 0 40,000 167,000
B & J 111,000 90,000 35,000 0 236,000
C & S 98,000 0 10,000 108,000
Totals 272,000 154,000 45,000 40,000 511,000
Required
a).Compute the estimated uncollectible account at the end of the year using the following rates
Current 3%
1-30 days past due 5%
31-60 days past due 15%
Over 60 days past due 30% (5 marks)
b).As of July 31, 2005, there is a debit balance of K227, 000 in the allowance for doubtful accounts. Compute the amount of the adjustment for the uncollectible which is to be expensed to the income statement as at 31 July. (2 marks)
C) In general journal form, show how the adjustment in (b) will be recorded in C B shops books (1 mark)
d) On August 18 2005, the accounts receivable of I & T amounting to K264, 000 was recognized as uncollectible. Record this write off in the general Journal (1 mark)
e) ON September 2, 2005, a cheque for K 200,000 was received from J & R to apply on his K602, 000 accounts, which had been written off as uncollectible on December 19 2004 .Record this transaction in the general journal.(2 marks)
f) Suppose that instead of aging the accounts receivable, the company estimated the uncollectible accounts to be 5 % of the total accounts receivable on July 31.Assume also that allowance for doubtful accounts has a credit balance of K125, 000 before the adjusting entry. Give the general journal entry to record the adjustment for estimated losses from uncollectible accounts. (5 marks)
g)On March 1 2009,Dig printing company received a 120 day ,10 % interest bearing note from Moon in settlement of the past due account receivable of K 6,000,000 .On March 31 Dig discounted this note at Barclays bank. The bank charged a discount rate of 12%.
What are the proceeds for the transaction?
Give the general journal entries to record these transactions in the books of Dig (5 marks)
well if you mind helping please as i need it.
Answer by solver91311(24713)   (Show Source):
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John
My calculator said it, I believe it, that settles it
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