Northwest Cape Pty Ltd offers very selected long-term customers 14-day credit terms relating to their offshore...

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Northwest Cape Pty Ltd offers very selected long-term customers 14-day credit terms relating to their offshore deep-sea fishing tours. Whilst the company has few bad debts, the business does maintain 'The allowance method' relating to their accounts receivable. The company has asked you to update its Accounts Receivable. The following information has been supplied. Northwest Cape Pty Ltd Statement of Financial Position (Extract) at 30 June 2021 Current Assets $ $ Accounts Receivable 30,000 Allowance for doubtful debts (6,000) 24,000 On 22 August 2021, a balance owed of $3,750 by Mr. Rory Wilde, a member of the Melbourne Anglers Club in the 2020 2021 financial year was judged uncollectable. On 1 March 2022, an electronic bank transfer of $2,500 was received from Mr. Rory Wilde. Northwest Cape Pty Ltd issued a receipt for $2.500 to the customer Mr. Rory Wilde as verification that the debt written off on 22 August 2021 had been partly paid and no further action will be taken to receive the balance of monies owed by Wilde. Northwest Cape Pty Ltd Aged Receivables Summary at 30 June 2022 Amount owing Estimated Bad debt rate. Estimated Uncollectable 0-30 days 31-60 days 61-90 days $10,500 $20,400 $8,500 8% $840 20% $4,080 30% $2,550 Required: 1. Prepare the General Journal entries to record the event on 22 August 2021. Narration is not required. Disregard GST for this question. (2 marks) Example: DR: Account 1 xx CR: Account 2 xx 2. Prepare the General Journal entries to record the event on 1 March 2022. Disregard GST for this question. (4 marks) 3. Prepare the General Journal entries to record the event on 30 June 2022. Disregard GST for this question. (2 marks) 4. Determine the account, classification, and the amount that would be reported in the following Financial Statements in relation to the above financial data as at 30 June 2022 (2 marks Northwest Cape Pty Ltd offers very selected long-term customers 14-day credit terms relating to their offshore deep-sea fishing tours. Whilst the company has few bad debts, the business does maintain 'The allowance method' relating to their accounts receivable. The company has asked you to update its Accounts Receivable. The following information has been supplied. Northwest Cape Pty Ltd Statement of Financial Position (Extract) at 30 June 2021 Current Assets $ $ Accounts Receivable 30,000 Allowance for doubtful debts (6,000) 24,000 On 22 August 2021, a balance owed of $3,750 by Mr. Rory Wilde, a member of the Melbourne Anglers Club in the 2020 2021 financial year was judged uncollectable. On 1 March 2022, an electronic bank transfer of $2,500 was received from Mr. Rory Wilde. Northwest Cape Pty Ltd issued a receipt for $2.500 to the customer Mr. Rory Wilde as verification that the debt written off on 22 August 2021 had been partly paid and no further action will be taken to receive the balance of monies owed by Wilde. Northwest Cape Pty Ltd Aged Receivables Summary at 30 June 2022 Amount owing Estimated Bad debt rate. Estimated Uncollectable 0-30 days 31-60 days 61-90 days $10,500 $20,400 $8,500 8% $840 20% $4,080 30% $2,550 Required: 1. Prepare the General Journal entries to record the event on 22 August 2021. Narration is not required. Disregard GST for this question. (2 marks) Example: DR: Account 1 xx CR: Account 2 xx 2. Prepare the General Journal entries to record the event on 1 March 2022. Disregard GST for this question. (4 marks) 3. Prepare the General Journal entries to record the event on 30 June 2022. Disregard GST for this question. (2 marks) 4. Determine the account, classification, and the amount that would be reported in the following Financial Statements in relation to the above financial data as at 30 June 2022 (2 marks

Answer rating: 100% (QA)

To answer these questions we need to create the general journal entries for the given dates and then determine the account classification and amounts ... View the full answer