The accounts receivable's balance of Diana Sdn. Bhd. as at 30 June 20X1 is RM50,000. In...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The accounts receivable's balance of Diana Sdn. Bhd. as at 30 June 20X1 is RM50,000. In preparing the accounts, Diana Sdn. Bhd. needs to create an allowance for doubtful debts amounting to RM630. During the year ending 30 June 20X2, an amount totalling RM440 is to be written off as bad. The accounts receivable's balance as at 30 June 20X2 was RM100,000 (after bad debts had been written cff) and the allowance for doubtful debts will be 4% of outstanding accounts receivable. To close the accounts on 30 June 20X3, bad debts amounting to RM2,260 should be considered. The allowance for doubtful debts is to be maintained at 3% of accounts receivable. As at 30 June 20X3, the accounts receivable balance (after bad debts had been written off) was RM90,000. You are required to show the following for the year ended 30 June 20X1, 20X2 and 20x3: (a) Accounts receivable accounts (b) Allowance for doubtful debts account (c) Statement of profit or loss (extract) (d) Statement of financial position (extract) The accounts receivable's balance of Diana Sdn. Bhd. as at 30 June 20X1 is RM50,000. In preparing the accounts, Diana Sdn. Bhd. needs to create an allowance for doubtful debts amounting to RM630. During the year ending 30 June 20X2, an amount totalling RM440 is to be written off as bad. The accounts receivable's balance as at 30 June 20X2 was RM100,000 (after bad debts had been written cff) and the allowance for doubtful debts will be 4% of outstanding accounts receivable. To close the accounts on 30 June 20X3, bad debts amounting to RM2,260 should be considered. The allowance for doubtful debts is to be maintained at 3% of accounts receivable. As at 30 June 20X3, the accounts receivable balance (after bad debts had been written off) was RM90,000. You are required to show the following for the year ended 30 June 20X1, 20X2 and 20x3: (a) Accounts receivable accounts (b) Allowance for doubtful debts account (c) Statement of profit or loss (extract) (d) Statement of financial position (extract)
Expert Answer:
Answer rating: 100% (QA)
For the year ended June 30 20X1 a Accounts Receivable Dr RM Accounts Receivable 50000 Cr RM Allowanc... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
The Austin Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2013 and 2014: a. Journalize the transactions. (The Austin Co. uses the income statement approach to...
-
The appropriate amount of an Allowance for Doubtful Accountants (that serves as a contra asset to Accounts Receivable) is generally determined by figuring out how long the underlying receivables have...
-
The trial balance for Eureka Ltd as at 30 June 2012 (before calculation of income tax) is as follows: Note: this is the first year of operation of Eureka Ltd. DR CR $000 $000 Sales Revenue 1235 Cost...
-
A rectangular plate lying on the xy plane has sides 2 in the x direction and in the y direction, thickness h in direction z, and is made of a material with Young's modulus E, Poisson's ratio v, and...
-
Parker is a 100% shareholder of Johnson Corp. (an S corporation). At the beginning of 2010, Parkers basis in his Johnson Corp. stock was $14,000. During 2010, Parker loaned $20,000 to Johnson Corp....
-
A 22-kV power line that is 10.0 km long supplies the electric energy to a small town at an average rate of 6.0 MW. (a) If a pair of aluminum cables of diameter 9.2 cm are used, what is the average...
-
Implement the collapsed Gibbs sampler for the Gaussian mixture model. At each iteration in the sampler, sample the means \(\mu_{k}\) even though they are not needed (sample them from the posterior...
-
Depreciation ComputationsFive Methods, Partial Periods Agazzi Company purchased equipment for $304,000 on October 1, 2010. It is estimated that the equipment will have a useful life of 8 years and a...
-
Are there any effects of using an activity based costing system that would only be encountered if using the ABC system to restructure the cost allocation of an international corporation, instead of a...
-
1. Liam Richardson is the business manager for the Smith & Lyngate Insurance agencies in the state of Maryland. Liam is interested in increasing the number of agents in Baltimore and plans to buy...
-
What is one very common tool firms use to analyze their strategic and competitive situations?
-
Fill in the Blank. When the speed of rotation of a shaft equals one of the natural frequencies of the shaft, it is called ____________ speed.
-
What is the role of transformation matrices in the finite element method?
-
True or False. The element mass matrices are always singular.
-
Fill in the Blank. The moving elements of a reciprocating engine are the crank, the connecting rod, and the ____________.
-
What is the basis for the derivation of transformation matrices?
-
This part (experiment 2) refers to the same data fileAssignment 2 dataset.csv: This dataset uses fictitious game show variables.Use the = .05 threshold. Use R or JASP to answer the following...
-
The following items were displayed in the statement of affairs for Lubbock Company: Fully secured liabilities ......... $90,000 Partially secured liabilities ....... 12,000 Unsecured liabilities...
-
As a graduate accountant one of the first things you have been asked to do by your employer, Smart Manufacturing Systems Pty Ltd, is to write a memo to senior management explaining the difference...
-
Greg, Graham and Gordon are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows: Greg Graham...
-
Newbery and Newstead is a public accounting firm specialising in auditing local medium-sized businesses. Fees charged for each audit are determined on the basis of identifiable hours worked on an...
-
What are three categories of funds that fall under the bond mutual fund group?
-
What is an open-end mutual fund?
-
Choose three categories of stock or bond funds in which you think you might like to invest. Explain why you think they are good investments.
Study smarter with the SolutionInn App