On December 1, 2020, ABC Company has a cash balance of OMR 50,188, Accounts Receivable balance...

  

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On December 1, 2020, ABC Company has a cash balance of OMR 50,188, Accounts Receivable balance of OMR 40,188 and Allowance for Doubtful Accounts of OMR 2,000 before adjustment. The following transactions are for the month of December. Dec. 1- Shareholders new contributions to the company equity for a total of OMR 70,188 Dec. 2- ABC sold goods to cash customers, list price is OMR 5,188 with a trade discount of 20%. Dec. 3- ABC sold goods to customer XYZ on account, OMR 3,188, trade discount of 10%, Term is 2/10, n/30. Dec.4 ABC purchased a machine from KM Company for total price of OMR 5,188, made a down payment of 40% and the balance on account. Dec. 5- Acquired a loan from Bank Muscat, loan proceeds amounted to OMR 20,188 Dec. 6 - Customer XYZ informed the company that goods worth OMR 500 are damaged upon purchase and requested for reduction of its account. Dec. 8 Collected 60% of the account of customer XYZ. Dec. 15 Paid 30% of the account with KM Dec. 19- Sold goods to customer GBN worth OMR 5,188, received a 60 day, 9% note. Dec. 30 Paid installment with Bank Muscat loan, OMR 500 ABC Company estimated that 10% of their outstanding accounts receivable will be uncollectible. Requirement: a. Prepare the journal entries for the month of December 2020 b. Prepare and complete the ledger for Cash and Accounts Receivable c. How much is the Net Realizable Value of Accounts Receivable as of December 31, 2020? d. How much is the cash proceeds of the note collection with customer GBN on maturity date? Date Account Title General Journal Debit Credit Date Date DEBIT Amount DEBIT Amount Cash Ledger Date Accounts Receivable Ledger Date CREDIT Amount CREDIT Amount On December 1, 2020, ABC Company has a cash balance of OMR 50,188, Accounts Receivable balance of OMR 40,188 and Allowance for Doubtful Accounts of OMR 2,000 before adjustment. The following transactions are for the month of December. Dec. 1- Shareholders new contributions to the company equity for a total of OMR 70,188 Dec. 2- ABC sold goods to cash customers, list price is OMR 5,188 with a trade discount of 20%. Dec. 3- ABC sold goods to customer XYZ on account, OMR 3,188, trade discount of 10%, Term is 2/10, n/30. Dec.4 ABC purchased a machine from KM Company for total price of OMR 5,188, made a down payment of 40% and the balance on account. Dec. 5- Acquired a loan from Bank Muscat, loan proceeds amounted to OMR 20,188 Dec. 6 - Customer XYZ informed the company that goods worth OMR 500 are damaged upon purchase and requested for reduction of its account. Dec. 8 Collected 60% of the account of customer XYZ. Dec. 15 Paid 30% of the account with KM Dec. 19- Sold goods to customer GBN worth OMR 5,188, received a 60 day, 9% note. Dec. 30 Paid installment with Bank Muscat loan, OMR 500 ABC Company estimated that 10% of their outstanding accounts receivable will be uncollectible. Requirement: a. Prepare the journal entries for the month of December 2020 b. Prepare and complete the ledger for Cash and Accounts Receivable c. How much is the Net Realizable Value of Accounts Receivable as of December 31, 2020? d. How much is the cash proceeds of the note collection with customer GBN on maturity date? Date Account Title General Journal Debit Credit Date Date DEBIT Amount DEBIT Amount Cash Ledger Date Accounts Receivable Ledger Date CREDIT Amount CREDIT Amount

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Solution Date 2020 Deci Cash Ale Equily share Capital Ay Being shareholders New Contribution Amount ... View the full answer