Question 1:

Which statement below best defines an account receivables ledger control account?

A. It is part of the ledger accounts for double entry.

B. It is part of the trial balance.

C. It only deals with totals and not individual transactions.

D. It is required by legal authorities.

Question 2:

Account receivables cannot have a credit balance.

A. True

B. False.

Question 3:

The account receivables balance for the year ended 31^st March 20XX was $ 24,800. Bad debts of $2,800 were written off on this date and an amount of $3,000 in respect of bad debts written of in the previous year was recovered in cash. The provision for doubtful debts was $1,400 as at this date. The company has given a further allowance for doubtful debts of $ 1,800 at the end of gthe current period.

Required (as ta 31^st March 20XX):

1.Accounts Receivables account.

2.Bad debts account.

3.Bad debts recovery account.

4.SOPL extract.

5.SFP extract.

Please click on link for sample exercise

Question 4:

PQR Limited keeps accounts receivable control accounts in the General Ledger. The transactions for the month ended 30 September 20XX were as follows:

	$
Credit balances on 1 September	154
Debit balances on 1 September	956
Credit balances on 30 September	178
Credit sales	4,563
Cheques received from debtors	3,140
Cash received from debtors	1,367
Bad debts written off	68
Discounts allowed	169
Contra from purchases ledger	34
Refunds to debtors	62
Returns inwards	231

Required:

Accounts receivables ledger control account for the month of September 20XX

Please click on link for sample exercise

Question 5:

Explain the difference between bad debts and provision for doubtful debts.

Question 6:

Account receivables can be converted into cash before their maturity. Explain three ways of converting receivables to cash.