Prepare T accounts for : 1. Accounts receivable 2. Allowance for doubtful debts Show how the above
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The following information relates to the business of David & Sons Company. The financial year of the company ends at 30 June 2022. Opening balance of Account Receivables Opening balance of the Allowances for Doubtful Debts Closing Balance of Account Receivables Net credit sales during the year $22 200 2 820 28 860 78 000 During the year, $2 160 of account receivables were written off as bad debts. David & Sons Company uses the net credit sales method to estimate doubtful debts. It is estimated that three per cent of the net credit sales will become uncollectable. Ignore GST. The following information relates to the business of David & Sons Company. The financial year of the company ends at 30 June 2022. Opening balance of Account Receivables Opening balance of the Allowances for Doubtful Debts Closing Balance of Account Receivables Net credit sales during the year $22 200 2 820 28 860 78 000 During the year, $2 160 of account receivables were written off as bad debts. David & Sons Company uses the net credit sales method to estimate doubtful debts. It is estimated that three per cent of the net credit sales will become uncollectable. Ignore GST.
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Answer rating: 100% (QA)
TAccount for Accounts Receivable Date Description Debit Credit Balance Opening Balance 22200 22200 S... View the full answer
Related Book For
Understanding financial statements
ISBN: 978-0136086246
9th Edition
Authors: Lyn M. Fraser, Aileen Ormiston
Posted Date:
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