Liaqat Trading Company is a wholesaler of domestic appliances to retailers in the territory. The company's...

 

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Liaqat Trading Company is a wholesaler of domestic appliances to retailers in the territory. The company's accounts receivables from different retailing customers have accounted to Rs. 875,000 as on 30 April 2020. The company is using direct write-off method for charging bad debt expenses and valuation of its accounts receivables. During May, 2020 it was learnt that a customer namely Sadiq Electronics has died and the accounts receivables amounting to Rs. 50,000 from this customer are no more receivable. However, late during June, 2020 upon disposal of his property, 45% of the due were recovered. Required 1) 2) 3) Record necessary accounting entry for writing off the accounts receivable from the expired customer. Record collection of the dues from the disposal proceeds of the property of expired customer. Present the amount of accounts receivables in the balance sheet as at 30 June, 2020. Liaqat Trading Company is a wholesaler of domestic appliances to retailers in the territory. The company's accounts receivables from different retailing customers have accounted to Rs. 875,000 as on 30 April 2020. The company is using direct write-off method for charging bad debt expenses and valuation of its accounts receivables. During May, 2020 it was learnt that a customer namely Sadiq Electronics has died and the accounts receivables amounting to Rs. 50,000 from this customer are no more receivable. However, late during June, 2020 upon disposal of his property, 45% of the due were recovered. Required 1) 2) 3) Record necessary accounting entry for writing off the accounts receivable from the expired customer. Record collection of the dues from the disposal proceeds of the property of expired customer. Present the amount of accounts receivables in the balance sheet as at 30 June, 2020.

Answer rating: 100% (QA)

Answer 1 Record necessary accounting entry for writing off the accounts receivab... View the full answer