Question: Please answer Part A and B for below question and show all workings. Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to

Please answer Part A and B for below question and show all workings.

Please answer Part A and B for below question and show all workings. Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities

Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to its customers. The accounting records at 30 June 2020 reveal the following. All amounts shown (except where indicated) include GST. In the past, the company's yearly bad debts expense had been estimated at 2.5% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable: Required A. Prepare the journal entries to adjust the Allowance for doubtful debts at 30 June 2020 under: 1. the net credit sales method 2. the ageing of accounts receivable method. (7 marks) B. Determine the balance in the Allowance for doubtful debts account under both methods. (4 marks) A. (2) B. (1)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Part 1 (11 marks] Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to its customers. The accounting records at 30 June 2020 reveal the following. All amounts shown...

Sydney Kitchens Pty Ltd builds and installs kitchens offering credit facilities to its customers. The accounting records at 30 June 2020 reveal the following. All amounts shown (except where...

Need HELP FOR ALL THE QUESTIONS question all in the file ASSIGNMENT QUESTIONS Answer ALL questions Due date: Value: Monday 4 April, 2016 15% Rationale This assignment covers Weeks 1 - 10, and builds...

Please answer PART C FINAL AUDIT - Question 6 Audit Report, thanks. Bb Sheet2 X + X C...

Part 1 (15 marks) Good Quality Furniture Pty Ltd builds and installs office Furniture offering credit facilities to its customers. The accounting records at 30 June 2021 reveal the following. All...

only question 2.. plz help me.. im offering all my credits. i swear... Faculty of Business, Economics & Accounting Department of Accounting and Finance HELP Bachelor of Business (Hons) Year 3...

I would like assist for my assessment. The subject is Subsidiary Accounts and Ledgers and Foundation Skills. T-1.8.1 Details of Assessment Term and Year 1, 2017 Time allowed Week 2-7 Assessment No 1...

CRA CDs Inc. wants the mean lengths of the cuts on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute...

Nevens Company uses a periodic inventory system. During November, the following transactions occurred: Date Transaction Units Cost/Unit November 1 Balance 500 $3.50 8 Sale 350 13 Purchase 300 4.00 21...

The Blue Shield concept grew out of the lumber and minor camps of the blank region at the turn of

6. How did American Waters data warehouse improve operations and management decision making? American Water, founded in 1886, is the largest public water utility in the United States. Headquartered...

4. How did implementing a data warehouse help American Water move toward a more centralized organization? American Water, founded in 1886, is the largest public water utility in the United States....

6-8 Iko Instruments Group, a global supplier of measurement, analytical, and monitoring instruments and services based in the Netherlands, had a new data warehouse designed to analyze customer...