The following selected transactions relate to Diani Plc March 1 Sold Ksh 20,000 of merchandise to Nakuru
Question:
The following selected transactions relate to Diani Plc
March
1 Sold Ksh 20,000 of merchandise to Nakuru plc, terms 2/10, n/30
11 Received payment in full from Nakuru plc for balance due
12 Accepted Meru Ltd's Ksh 40,000, 12% note for balance due on existing account receivable
13 Made Diani plc credit card sales for Ksh 26,400
15 Made visa credit card sale totalling Ksh 13,400. A 3% service fee is charged by VISA
April
11 Sold accounts receivable of Ksh 16,000 to Harare Factor. Harare Factor charges a fee of 10
13 Received collections of Ksh 16,400 on Diani plc credit sales and added finance charges of 1.5% to the remaining balances
May
10 Wrote off as uncollectible Ksh 32,000 of accounts receivable. Diani uses the percentage of sales basis to estimate bad debts
June
30 Credit sales recorded during the first 6 months total Ksh 4,000,000. The bad debt percentage is 1% of credit sales. At June 30th , the balances in the allowance account is Ksh 3,500 before adjustment. The company financial statements on a semi annual basis.
July
16 One of the accounts receivable written off in May was from Simpson, who pays the amount Ksh 4,000 in full
Required;
Pass the required journal entries (20 marks)
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild