No. 2(a) (i): Preparation of journal entry to record the writing off of bad debts: No. 2(a) (ii): Journal entry for creation of Provision for doubtful debt as at 31 Dec, 2010: Workings;
No. 2(a) (iii): Drawing up the Provision for Doubtful Debt account for the two years, 1st January 2010 to 31st December 2011, showing the balances at the end of each year: Workings; Calculation of balance of provision for doubtful debt as at 31 Dec, 2011: $25,000 x 10% = $2,500. Therefore provision needs to be reduced by $332, (that is; $2,832-$2,500 = $332). To reduce the provision the following double entry needs to be carried out: Debit – Provision for doubtful debt a/c - $332 Credit – Income Statement - $332 To reduce the provision for doubtful debt account to $2,500. No. 2(b): Adjustments to financial statements:
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5 Comments
xavier McFarlane
12/5/2019 08:18:18 pm
may i have answers to question 3 a
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Krystal
12/6/2019 08:28:53 pm
Hi Xavier,
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Jane
3/29/2020 08:09:42 pm
Can you please post the answers for #1
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Ahad
11/6/2021 07:24:51 am
Can you post poa paper 2012 January question 1
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Kk
2/4/2022 04:03:58 am
Can you please do question 4
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AuthorThe author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor. Archives
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