part b

Moving to another question will save this response. Questa3f14N Question 3 points [CLO-4] At year-end (December 31), Rashid Company estimates its bad debts as 1 % of its annual credit sales of AED400,000. Rashid records its bad debts expense for that estimate. On the following February 15, Rashid decides that the AED800 account of Ayesha is uncollectible and writes it off as a bad debt On March 31st, Ayesha unexpectedly pays the amount previously written off Required: Part a) Prepare the journal entries of Rashid to record these transactions and events of December 31, February 15, and March 31st (4 marks) Part b) Ahmed Company's year-end unadjusted trial balance shows accounts receivable of $60,000, and sales of $200,000. Uncollectible are estimated to be 2% of accounts receivable Required: Prepare the year-end adjusting entry on December 31st for uncollectible if the allowance account had a year-end unadjusted credit balance of $300? [Note: part (b) is not linked with part (a) (1 mark) Part c) What is matching (expense recognition) principle? Why matching principle can be applied to estimate bad debts at the end of the accounting period? (1 mark) For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) BIVS Paragraph V 10pc Arial + EE AV 2 I. XOQ SE #2 @E XX,1. CB BD E (1) part a) MacBook Air