Accounting System and Process Assignment - University of XYZ

This assignment solution addresses key aspects of an accounting system and process. It includes journal entries for various transactions, such as accounts receivable, sales, cash, and bad debts, detailing the debit and credit entries. The solution explains two primary methods for estimating bad debts: the direct write-off method and the allowance method, providing journal entries for each. Furthermore, the assignment explores the impact of global development and online retail market trends, using examples like eBay to illustrate how e-commerce facilitates business expansion and customer reach. References to academic sources support the analysis, providing a comprehensive understanding of the topics discussed.

Running head: ACCOUNTING SYSTEM AND PROCESS
Name of the Student:
Assignment Task Number 2
Number of Questions Attempted: 3
Table of Contents

ACCOUNTING SYSTEM AND PROCESS
Answer to Question 9......................................................................................................................2
Answer to Question 10....................................................................................................................2
Answer to Question 11....................................................................................................................4
References........................................................................................................................................5
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ACCOUNTING SYSTEM AND PROCESS
Answer to Question 9
In the Books of…
Journal Entries
Dr. Cr.
Particulars Amount Amount
Accounts Receivable A/c. Dr. $6,588
To, Sales A/c. $6,588
Cash A/c. Dr. $3,294
To, Accounts Receivable A/c. $3,294
Bad Debts Expenses A/c. Dr. $3,294
To, Accounts Receivable A/c. $3,294
Cash A/c. Dr. $3,294
To, Bad Debt Recoveree A/c. $3,294
Answer to Question 10
The two important methods for the estimation of the bad debt is seen to be listed below as
follows:
1. Direct write off method: This method of the estimation of the bad debt is associated to
the various types of the aspect which is relates to recording of the revenues from the sales
and the estimation is seen to be shown as per the bad debts computation. In addition to
this the uncollectible amount is directly written off from the sales revenue of the business
(Renz & Herman, 2016).
2. Allowance Method: In terms of the allowance method the amount of the revenue sales is
seen to be based on the uncollectible which is recorded in the same year as the revenue
from the sales and the same is illustrated in the estimated bad debt. The bad debts which
are seen to be written off directly placed in the allowance account (Scott, 2015).
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ACCOUNTING SYSTEM AND PROCESS
First
Method:
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ACCOUNTING SYSTEM AND PROCESS
In the Books of…
Journal Entries
Dr. Cr.
Particulars Amount Amount
Bad Debts Expenses A/c. Dr. $10,002
To, Accounts Receivable A/c. $10,002
Profit & Loss A/c. Dr. $10,002
To, Bad Debts Expenses A/c. $10,002
Cash A/c. Dr. $10,002
To, Bad Debt Recoveree A/c. $10,002Second
Part:
In the Books of…
Journal Entries
Dr. Cr.
Particulars Amount Amount
Bad Debts Expenses A/c. Dr. $10,002
To,
Provision for Doubtful
Debts A/c. $10,002
Provision for Doubtful Debts
A/c. Dr. $10,002
To, Accounts Receivable A/c. $10,002
Profit & Loss A/c. Dr. $10,002
To, Bad Debts Expenses A/c. $10,002
Accounts Receivable A/c. Dr. $10,002
To,
Provision for Doubtful
Debts A/c. $10,002
Cash A/c. Dr. $10,002
To, Accounts Receivable A/c. $10,002
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Answer to Question 11
The advent of the global development is seen to be supported with the introduction of the
facilitated changes. The retail market is further seen to be based on the introduction of the online
retail market trends and e-commerce facilities. This has been able provides the necessary
opportunities which will be able to address the issues related to business expansion and serving
as many number of the customers as possible (Titman, Keown & Martin, 2017). . For instance, it
needs to be discerned that E-bay is an appropriate example for the online marketing activity. It
has been further depicted that the company has a large number of goods to offer ranging from the
“clothes, food items, luxury products like branded watch, sunglasses”. The use of the several
types of electronics products and computers are a key aspect in the online marketing world. In
case of Ebay the popularity is seen in terms of the popularity as they are able to provide all the
products in one stop destination by just placing order online (Bilgihan, 2016).
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ACCOUNTING SYSTEM AND PROCESS
References
Bilgihan, A. (2016). Gen Y customer loyalty in online shopping: An integrated model of trust,
user experience and branding. Computers in Human Behavior, 61, 103-113.
Renz, D. O., & Herman, R. D. (Eds.). (2016). The Jossey-Bass handbook of nonprofit leadership
and management. John Wiley & Sons.
Scott, W. R. (2015). Financial accounting theory (Vol. 2, No. 0, p. 0). Prentice Hall.
Titman, S., Keown, A. J., & Martin, J. D. (2017). Financial management: Principles and
applications. Pearson.
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