ACCT 1211: Accounting I - Assignment 8

ACCT 1211: Accounting I A8-1
Acct 1211_Student ID_Student
Name_Assignment_8
Question 1
(25 marks)
A.
General Journal
DATE
2018
ACCOUNT TITLES AND
EXPLANATIONS
POST.
REF. DEBIT CREDIT
Sep 29
Allowance for Doubtful Debts
Account...............Dr $8,300
To Connie Downs Account $3,000
To Dennis Jade Account $3,200
To Evan Sander Account $2,100
(To write off receivables)
Sep 30 Bad Debt Expenses Account..........Dr $9,850
To Allowance for Doubtful Debts
Account $9,850
*Computation:
Age of Accounts
Accounts
Receivable 1–30 Days 31–60 Days 61–90 Days
Over 90
Days
Total = $
420,000
$
2,50,000 $ 1,00,000
$
40,000
$
30,000
Estimated %
Uncollectible
0.10%
0.40%
0.50% 30%
Individual
total
$
250 $ 400
$
200
$
9,000
Total
$
9,850

A8-2 Assignment 8
B.
ACCOUNT ALLOWANCE FOR DOUBTFUL ACCOUNTS
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT BALANCE
Sep 1 By Opening Balance $20,000 ($20,000)
Sep 29 To Connie Downs $3,000 ($17,000)
Sep 29 To Dennis Jade $3,200 ($13,800)
Sep 29 To Evan Sander $2,100 ($11,700)
Sep 30 By Bad Debts Expense $9,850 ($21,550)
Sep 30 To Closing Balance $21,550 -
Total $29,850 $29,850 -
C.
In the Books of Sarvory Sweet Limited
Balance Sheet Statement
As on September 2018
Particulars 2018 2017
Equity and liabilities:
Reserves and surplus
Allowance for Doubtful Debts $21,550 $30,000
Assets:
Current assets:
Receivables $400,000 $440,000
D.
General Journal
DATE
2018
ACCOUNT TITLES AND
EXPLANATIONS
POST.
REF. DEBIT CREDIT
Sep 30 Bad Debts Expense Account.........Dr $12,000
To Allowance for Doubtful Debts
Account $12,000
(To record bad debts expense)

ACCT 1211: Accounting I A8-3