Beacon Limited had the following trial balance as at 1 January 2019, as shown in the...

 

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Beacon Limited had the following trial balance as at 1 January 2019, as shown in the table below: Account Debit $ Credit $ Cash 250 000 Accounts receivable 600 000 Inventory 730 000 Prepaid insurance 60 000 Prepaid rent 50 000 Equipment 1 500 000 Allowance for doubtful debts 20 000 Accumulated depreciation 500 000 Accounts payable 700 000 Revenue received in advance Income tax payable 120 000 530 000 Loan 600 000 Share capital 400 000 Retained profits 320 000 3 190 000 3 190 000 You are given the following additional information for the year ended 31 December 2019: a) Bad debts of $14,380 were written off. b) It was decided that allowance for doubtful debts should be 5 per cent of accounts receivable. Required: 1) Prepare journal entries for these transactions. (5 marks) 2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019: a) Accounts receivable (1 mark) b) Allowance for doubtful debts (1 mark) Beacon Limited had the following trial balance as at 1 January 2019, as shown in the table below: Account Debit $ Credit $ Cash 250 000 Accounts receivable 600 000 Inventory 730 000 Prepaid insurance 60 000 Prepaid rent 50 000 Equipment 1 500 000 Allowance for doubtful debts 20 000 Accumulated depreciation 500 000 Accounts payable 700 000 Revenue received in advance Income tax payable 120 000 530 000 Loan 600 000 Share capital 400 000 Retained profits 320 000 3 190 000 3 190 000 You are given the following additional information for the year ended 31 December 2019: a) Bad debts of $14,380 were written off. b) It was decided that allowance for doubtful debts should be 5 per cent of accounts receivable. Required: 1) Prepare journal entries for these transactions. (5 marks) 2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019: a) Accounts receivable (1 mark) b) Allowance for doubtful debts (1 mark)