Week 3 Accounting

"Use this page to type out problems that do not require the use of the other worksheets "The other worksheets contained in the workbook include useful templates for each week 's assignment "Exercise 13R-1 "Aged Debtors Analysis as at 31st December "Trade Debtor "Balance Due "Current "31-60 days "61-90 days 90 days "Jones Co "1500 "1500 "Kon Co "700 "700 "Roger Co "1400 "1400 "Bill Co "125 "125 "Doe Co "2100 "1200 "900 "Joe Co "1200 "1200 "Francis Co "600 "600 "7625 "2600 "900 "125 "4000 "Bad Debt Expense "78 "72 "15 "1200 "Previous Balance "350 "Current "1365 "Total Bad

Debts "1715 "Under the direct write-off technique an organisation does not anticipate any bad debts expense . Such expenditure will only be recorded once it is incurred . This will lead the trade receivables of the company to be overstated in the Balance Sheet , since they are recorded gross of bad debt allowances . This infringes the matching principle on the grounds that such concept states that expenditure is recorded once incurred . In this respect estimation of such expense should be conducted accordingly . In accounting the allowance method is because it reflects such doubtful debts by deducting them from the accounts receivable figure . Through such an accounting treatment the accounts receivable in the Balance Sheet will reflect more its true value , thus portraying a more accurate picture "Name "General Journal "GENERAL JOURNAL " Date " Account Titles and Explanation "P . R "Debit "Credit "Exercise 13-2 "01-Jan "Bad Debt Expense "4380 "01-Jan "Allowance for Doubtful Accouns "4380 "Being Bad Debt Expense under income statement approach recorded in books "Exercise 13-3 "01-Jan "Bad Debt Expense "13000 "01-Jan "Allowance for Doubtful Accouns "13000 "Being Bad Debt Expense under balance sheet approach recorded "Exercise 13-4 "01-Jan-10 "Bad Debt Expense "12000 "01-Jan-10 "Allowance for Doubtful Accounts "12000 "Being bad debt expense reflected in the accounts "04-Apr-10 "Allowance for Doubtful Accounts "4000 "04-Apr-10 "Accounts Receivable "4000 "Being Angie Ring debtor written off from the books "05-Jun-10 "Allowance for Doubtful Accounts "3000 "05-Jun-10 "Accounts Receivable "3000 "Being Mike Catuc account receivable struck off from the accounts as irrecoverable "06-Aug-11 "Cash "500 "06-Aug-11 "Allowance for Doubtful Accounts "500 "Being recovery of part of the bad debt due from Mike Catuc "06-Aug-11 "Bad Debt Expense "3000 "06-Aug-11 "Accounts Receivable "3000 "Being bad debt of Mike Catuc reflected under the direct write-off method "Exercise 13-5 "01-Jan-12 "Bad Debt Expense "3000 "01-Jan-12 "Allowance for Doubtful Accounts "3000 "Being uncollected accounts reflected in the books under the income stat . approach "01-Jan-12 "Bad Debt Expense "3200 "01-Jan-12 "Allowance for Doubtful Accounts "3200 "Being bad debt expense reflected under the balance sheet approach "Exercise 13R-1 "31-Dec "Bad Debt Expense "1715 "31-Dec "Allowance for Doubtful Accounts "1715 "Being bad debt expense recorded under the balance sheet approach "Name "Part 1 "Name "General Ledger "GENERAL LEDGER " Accounts Receivable "Cash "ACCOUNT NO . ____ " Date " Explanation "P .R "DEBIT "CREDIT "BALANCE " Office Supplies "Accounts Receivable "ACCOUNT NO . ____ " Date " Explanation "P .R "DEBIT "CREDIT "BALANCE " Prepaid Insurance "Inventory "ACCOUNT NO . ____ " Date...