A company's balance sheet are as follow:
Trade receivable in05 was$150,000,bad debt provision was$3000and 06 was$147,000.
Year to06 the company writes off debt of$10,000.Credit sales amount to$750,000 and cash received from debtors total$400,000.The company wants to provide for2%of its final trade receivables at06.
Calculate what fig will be in the company's Income Statement in respect of bad debts and show what trade receivables figures will appear in current assets at06.
accounting
2007-11-11 10:42 am
回答 (2)
2007-11-11 9:40 pm
✔ 最佳答案
Entries:1) Bad Debts written off
Dr. Bad Debts 10,000
Cr. Trade Receivable 10,000
2) Credit sales for 06
Dr. Trade Receivable $750,000
Cr. Sales $750,000
3) Cash received from debtors this 06
Dr. Bank $400,000
Cr. Trade Receivable $400,000
Therefore Trade Receivable, Bad debts & Provision for bad debts are as follows:
4) Trade Receivable
(05) $150,000+ (06) $750,000 - (06) cash received from debtors $400,000 -(06) Bad debts $10,000 = $490,000
5) Provision for bad debts
$490,000 2 x 2% = $9,800 less $3,000 (05) = $6,800
Dr. Bad debts $6,800
Cr. Provision for bad debts $6,800
6) Bad debts
(06) $10,000 (refer to entries 1) + $6,800 (refer to entries 5) = $16,800
In Income Statement 06
Bad debt = $16,800 (refer to entries 6)
In Balance Sheet 06
Current Assets
Trade Receivable $490,000
Less: Provision for bad debts $9,800
2007-11-12 12:33 am
2005
Trade receiveable $150,000
Provision for bad debts $3,000
2006
Provision for bad debts $147,000.
Trade receivable :
$150,000-$10,000-$400,000+750,000=$490,000
Bad Debts :
$7,000+($490,000x2%)=$16,800.
Provision for bad debts :
$3,000-$3,000+$16,800+$147,000=$163,800.
2007-11-11 16:36:08 補充：
Bad Debts :$7,000 ($490,000x2%)=$16,800.Provision for bad debts : $3,000-$3,000 ($490,000x2%) $147,000=$156,800.
2007-11-11 16:37:02 補充：
Provision for bad debts : $3,000-$3,000 ($490,000x2%) $147,000=$156,800.
Trade receiveable $150,000
Provision for bad debts $3,000
2006
Provision for bad debts $147,000.
Trade receivable :
$150,000-$10,000-$400,000+750,000=$490,000
Bad Debts :
$7,000+($490,000x2%)=$16,800.
Provision for bad debts :
$3,000-$3,000+$16,800+$147,000=$163,800.
2007-11-11 16:36:08 補充：
Bad Debts :$7,000 ($490,000x2%)=$16,800.Provision for bad debts : $3,000-$3,000 ($490,000x2%) $147,000=$156,800.
2007-11-11 16:37:02 補充：
Provision for bad debts : $3,000-$3,000 ($490,000x2%) $147,000=$156,800.
收錄日期: 2021-04-13 14:25:08
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