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Question: at 30 november 2020 the trial balance of waja...

Question details

At 30 November 2020 , the trial balance of WAJA Ltd contained the following amounts before adjustment:

 

Accounts Receivable

900,000

Allowance for Doubtful Debts

9,200

Sales

950,000

 

Required:

 

a)    Prepare the adjusting entry as at 30 November, 2020 to record the bad debts expense assuming that the ageing schedule indicates that 1.25% of accounts receivable will be uncollectible. (1 mark)

b)    During December 2020, a $2,000 customer balance is deemed uncollectible. Prepare the journal entry to record this bad debt write off. (1 mark)

c)     Repeat b) assuming that the direct write off method is used in WAJA Ltd(1 mark)

d)    During January 2021, the customer in b) above informed WAJA Ltd that he could pay $1500 of his debt. (1 mark)

 

 

 

 

 

 

(Both account names and figures should be correct in order to award marks.)

Narrations are NOT required

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