The provision for bad debt is to be adjusted to 10% of debtors. Debtors 45,000 Provision for
Question:
The provision for bad debt is to be adjusted to 10% of debtors.
Debtors 45,000
Provision for bad debts 8,000
How would I know when a provision for bad debt is increasing or decreasing. provide an explanation for increasing and decreasing.
Dr Cr
2. Fixtures and Fittings 35,000
Provision for depreciation- fixtures and fittings 6,000
Motor Vehicle 65,000
Provision for depreciation- Motor Vehicle 12,000
Calculate:
Fixtures and fittings are to be depreciated using the straight line method at a rate of 10% per annum, and the reducing balance method is to be used to depreciate motor vehicles at a rate of 20% per annum.
Cr
3. Rental income (from Jimmy Choo) 7,200
Calculate:
Vera rented Jimmy Choo a small section of the store for $500 per month; he rented the space for the entire year accounting year.
Dr
4. Insurance 7,500
Calculate:
The insurance expense amount represents the total paid for the period March 1, 2019, to May 31, 2020
Expert Answer:
The provision for bad debts represents an estimate of the amount of receivables that are likely to become uncollectible When the actual bad debt exper... View the full answer
