Mee has her financial year-end on 31 August. She provides the following information: In each year there

Question:

Mee has her financial year-end on 31 August. She provides the following information:

In each year there have been a number of bad debts which have yet to be written off.

Mee wishes to make provision for doubtful debts of 5% of debtors outstanding at each year-end (work to nearest whole number).

Required

Prepare for each year:

a) A bad debts account
b) A provision for doubtful debts account
c) An extract from the profit and loss account
d) Sn extract from the balance sheet.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introducing Accounting For AS

ISBN: 9780340959404

2nd Edition

Authors: Ian Harrison

See More Books

Question Posted: Aug 23, 2023 04:37 AM

See More Questions

A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
Glad Thomson provides the following information for the year ended 31 October 20*8. She maintains a provision for doubtful debts of 5%, based on outstanding debtors at the end of each financial year....
Robin has his financial year-end on 31 January. He provides the following information: 700 is to be written off as a bad debt in the year ended 31 January 20*6. 200 is to be written off as a bad...
- The first stream is $450 per year for 9 years and begins 5 years from today - The second stream begins 7 years from today with the first cash flow being $400, and with each successive cash flow...
Olympia Company establishes a stock appreciation rights program that entitles its new CEO to receive cash for the difference between the market price of the stock and a pre-established price of $20...
Harry Mendelson began his fraud investigation with great optimism. He was investigating a simple embezzlement from accounts receivables, in a small business with only one employee, and only the...
In 2016, Alta Motors was on the top of the world. The firms Redshift MX electric dirt motorcycle earned the #1 spot in the AMA EnduroCross racing series. The Redshift MX also took first place at the...
Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $ 540,000. The net cash flows associated with each product are...
6. An annular disk of mass M, inner radius a and outer radius b is placed on a horizontal surface with coefficient of friction , as shown in the figure. At some time, an impulse Jox is applied at a...
Try to fill the spaces for the next four years: To summarise: The amount needed to increase the provision for doubtful debts is entered as an expense on the profit and loss account. The amount...
Sheila wishes to maintain a provision for doubtful debts in her ledger at 31 December. Required Prepare the provision for doubtful debts account for each year. Provision for doubtful debts 20*6 610...
How can confirmations be used in auditing (a) Stockholder capital accounts and (b) Notes and bonds payable?
How is Job Order Costing different from Process Costing? What would be the characteristics of a company's inventory for Job Order Costing to make more sense to use than Process Costing? What would be...
8- A 600 m long straight drift airway is being driven on the 1200 m level of an underground mine. The cross section of the airway is the major segment of a circle of radius 9 m wide and its base is...
What are the mechanisms underlying nuclear reprogramming and cellular differentiation, and how are they controlled within the nucleus?
9. A cell has an unloaded potential difference of 1.45 V. A 330 2 resistor is connected as a load 1.31 as shown in the picture. The meter shows the new p.d. a) What is the emf of the cell? b) What is...
1. Sam and alex bought 20 blue and red tickets worth $100. The blue tickets were three dollars each and the red tickets were $11 each. How many blue and red tickets did they buy? 2. Shelly is five...
Consider separate 1.0-L samples of He(g) and UF 6 (g), both at 1.00 atm and containing the same number of moles. What ratio of temperatures for the two samples would produce the same collision...
What can scientists learn by comparing the fossilized skeletons of extinct primates with the bones of modern species?
The opening balance on a machinery account is debit $48 000. The closing balance is debit $40 000. There were no purchases or sales of machinery during the year. What is the cause of the difference...
A fire has destroyed some inventory during a year. You are uncertain of its value, but the following data are available. There is a uniform mark-up on all goods sold of 20%. Calculate the value of...
Cash received from trade receivables during a year is credited to a trade receivables adjustment account to find sales for the year. Is this statement true or false?
How can an organization ensure that Total Quality Management initiatives are sustained and not viewed as short-term projects?
How does ERP support sales and operations planning (S&OP) in supply chain organizations?
You receive a delivery of fresh, frozen and dry goods. How will you store these items to ensure food safety requirements, prevent spoilage and ensure security of goods?

Mee has her financial year-end on 31 August. She provides the following information: In each year there

Question:

Debtors 31 August 20*6 Debtors 31 August 20*7 Debtors 31 August 20*8 42,000 45,000 46,000

Step by Step Answer:

Year Ending 31 August 206 a Bad Debts Account Date Description Debit Credit 31 Aug 206 Provision for ...View the full answer

Introducing Accounting For AS

Students also viewed these Business questions

Debtors 31 August 206 Debtors 31 August 207 Debtors 31 August 20*8 42,000 45,000 46,000