Zainab company has sold goods on credit RO 55,000 on 31st December 2020 and received RO...

 

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Zainab company has sold goods on credit RO 55,000 on 31st December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days 26 to 30 days a. b. c. show the accounting treatment of bad and doubtful debts in income statement and balance sheet. Amount Percent 1% 5% 15% 25% 30% 50% 5,000 2,000 9,000 5,000 10,000 9,000 Total 40,000 Calculate the amount required in the allowance for doubtful debts as on 31ª December 2021, using accounts receivable method. Prepare journal entries for bad and doubtful debts d. Explain how the company can control the aged debts and the measures to collect them early. Zainab company has sold goods on credit RO 55,000 on 31st December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable accounts RO 40,000. Age of Accounts receivable Less than 5 days 5 to 10 days 11 to 15 days 16 to 20 days 21 to 25 days 26 to 30 days a. b. c. show the accounting treatment of bad and doubtful debts in income statement and balance sheet. Amount Percent 1% 5% 15% 25% 30% 50% 5,000 2,000 9,000 5,000 10,000 9,000 Total 40,000 Calculate the amount required in the allowance for doubtful debts as on 31ª December 2021, using accounts receivable method. Prepare journal entries for bad and doubtful debts d. Explain how the company can control the aged debts and the measures to collect them early.

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To calculate the amount required in the allowance for doubtful debts as on 31st December 2021 using ... View the full answer