GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled thebalance on her account by means of an electronic funds transfer. These transactions have not yet been recorded.Which of the following statements is correct in respect of the above transactions?OA. The Debtors Control account will decrease by R7 000.OB. The debtor owed R8 750.OC. The Bank account will be credited with R7 000.OD. The amount received from the debtor was R1 400.

GT traders wrote off R 1750, which represents 20% of the amount owed by the debtor.Hence Total…

Answered: GH Traders wrote off R1 750 which…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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An insolvent debtor paid GH Traders R3 500 which represented 80% of the amount owed. The balance on her account must be written of These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? O A The bad debt amounts to R700. O B. The debtor owed R4 375. OC. The Debtors Control account will decrease by R3 500. O D. The Bank account wilI be credited with R3 500.
1.10 N Minajo received an electronic funds transfer (EFT) of R4 500 from A Grand, a debtor, in full settlement of her account of R5 000. Both Minajo and Grand are not registered as VAT vendors. Which of the following is the correct option to record the receipt in the accounting records of N Minajo? A)Debit bank account (R5 000). credit debtors' control (R4 500), and credit settlement discount granted account (R500). B)Debit bank account (R4 500), credit debtors control (R5 000), and debit settlement discount received account (R500). C)Debit debtors' control (R5 000), credit bank account (R 4 500), and credit settlement discount received account (R500). D)Debit bank account (R4 500). credit debtors' control account (R5 000), and debit settlement discount granted account (R500).
At the end of the fiscal year, Accounts Receivable has a balance of R100 000 and allowance for doubtful accounts has a balance of R7 000. The expected net realizable value of the accounts receivable is________. Select one: a. R107 000 b. R7 000 c. R93 000 d. R100 000
54. CPA Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
*P7.13 (Bank Reconciliation and Adjusting Entries) The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2020. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined. 1. There were bank service charges for June of $25. 2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.) 3. Receipts for June 30 for $3,390 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $2,136.05. 5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.20 on June 29. 6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts…
You are appointed as the accountant of LALA-BTS Company. You noted that the Company estimated that 3% of its credit sales will not be collectible. Further documents showed the following balances before adjustments: •Credit Sales P2,500,000 •Accounts Receivable P300,000 •Allowance for doubtful accounts - 10,000 debit Determine the net realizable value of the accounts receivable.
1. Purple Company showed the following balances on December 31, 2020: Accounts receivable-unassigned Accounts receivable-assigned Allowance for doubtful accounts-January 1 Receivable from factor P1,000,000 300,000 30,000 40,000 240,000 Note payable-bank During the year 2020 Purple Company found itself in financial distress and decided to resort to receivable financing. On June 30, Purple Company factored P200,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored. On December 31, Purple Company assigned P300,000 of its accounts receivable to a bank under a nonnotification basis. The bank advanced 80% less a service fee of 5% of the account assigned. Purple Company signed a promissory note for the loan. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible. REQUIRED: a. Entry to record the factoring. b. Entry to record the…
On 31st August 2021, Rossy Enterprise had a RM155,000 debit balance in Accounts Receivable and a RM6,200 credit balance in Allowance for Doubtful debt. During September 2021, Rossy made the following transactions:Sept 1 : Sales on account, RM590,000.Sept 10: Collection from receivables through online banking, RM627,000.Sept 20: Write-offs of uncollectible receivables, RM7,000.Sept 30: Bad debt was estimated at 3% of the month’s credit sales.Required:1) Journalize all September transactions using the allowance method. Post the entries to Accounts Receivable, Allowance for Doubtful Debt, and Bad Debt Expense. You need to balance off the ledgers and show their balances on 30th September 2021.2) Show the amount of net accounts receivable would Rossy report in its statement of financial position as at 30 September 2021. Is the amount being realistic? Give your reason.
6. Simon's Cash Book shows a DR balance of GH¢240, his bank statement shows an overdraft of GHE100. Upon thorough investigation by Simon, the following findings were made: i. Simon had omitted standing orders totalling GH¢175 and bapk charges of GH¢7 from his cash book. i. A cheque for GH¢76 from a debtor was dishonoured iii. Simon had transferred GH¢500 from his deposit account to his current account, but the bank had performed the reverse transfer iv. Simon had brought forward a total of GH¢2,154 on the receipts side of the cash book as GH ¢1,254 Outstanding cheques, excluding those written bank, totalled GH¢750 V. vi. Uncleared lodgements totalled GH¢724 vii. In the previous month, Simon had written back old cheques totalling GH¢34 without telling the bank that these were to be cancelled. One of these cheques, for GH¢8 was presented for payment and appeared on the bank statement. Required: Show the adjustments to be made to the cash book and produce a bank reconciliation statement.…
Adobo Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
The cash book of JAKUSI Services Ltd showed a certain credit balance at 30th June 2020 while the bank statement showed a debit balance of GHC 1,162,000. On investigation, you made the following discoveries: a. Lodgements totalling GHC 762,000 had not been credited by the bank b. Cheques paid to suppliers totalling GHC 258,000 had not been presented to the bank c. A cheque for GHC 15,000 drawn on JAKUSI Services Ltd had been wrongly debited by the bank. d. Interest on Government Treasury Bills totaling GHC 52,100 were credited by the bank on 30th June; no entries were made in the cash book. e. An issue of cheque for GHC22,000 had been entered on the wrong side of the cash book. f. A cheque for GHC 80,000 deposited on 20th June had been returned by the bank with the remarks “No funds available”, but no adjustment had been made in the cash book. g. A cheque of GHC 30,000 received from a customer had been correctly entered in the cash book but was credited by the bank as GHC 20,000. h. A…
1. Kinney Corporation estimates its uncollectible accounts as a percentage of its credit sales. The rate it uses is 3% and in 2018, its credit sales were $1,500,000. Required: a. Prepare journal entries to record the bad debts expense for the year. b. If Allowance for an uncollectible account has a credit balance of $60,000 before entries in (a) above, show how Accounts Receivable will be presented in the Balance Sheet of Kinney Corporation.

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