Doubtful Receivables – NBC Institute

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

Question

Funke Limited’s management, based on the prudence principle, evaluated its trade receivables accounts over a period of three years ending on December 31 each year. The following were the extracts from the records of the outcome of the evaluation:

Year	Trade Receivables (₦)	Bad Debts (₦)	Allowance for Doubtful Receivables (%)
2014	654,000	24,000	2%
2015	745,000	18,000	2%
2016	585,000	22,000	2%

The value stated for trade receivables was net of the bad debts but before the allowance for bad debts. There was no allowance for bad debt before 2014.

Required: Prepare the ledger accounts for Bad Debts and Allowance for Doubtful Receivables.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debts, Doubtful Receivables, Ledger Accounts, Trade receivables
Level: Level 1

Topic: Bad and Doubtful Debts
Series: MAY 2017

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

Question

The trial balance of Prudent Limited included the following balances as at October 1, 2015:

Account	Amount (₦)
Trade receivables	1,564,000
Allowance for doubtful receivables	78,200

During the year to September 30, 2016, Prudent Limited’s credit sales were ₦8,142,000, cash received from customers was ₦7,820,000, and bad debts written off were ₦46,000. Based on experience, Prudent Limited decided to recognize additional allowance of 5% on its receivables as doubtful.

Required:
Prepare the ledgers for:

Receivables Account
Bad and Doubtful Debt Expense Account
Allowance for Doubtful Receivables Account
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debt, Doubtful Receivables, Ledger Accounts, Trade receivables
Level: Level 1

Topic: Bad and Doubtful Debts
Series: MAY 2016

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

Question

Year	Trade Receivables (₦)	Bad Debts (₦)	Allowance for Doubtful Receivables (%)
2014	654,000	24,000	2%
2015	745,000	18,000	2%
2016	585,000	22,000	2%

The value stated for trade receivables was net of the bad debts but before the allowance for bad debts. There was no allowance for bad debt before 2014.

Required: Prepare the ledger accounts for Bad Debts and Allowance for Doubtful Receivables.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debts, Doubtful Receivables, Ledger Accounts, Trade receivables
Level: Level 1

Topic: Bad and Doubtful Debts
Series: MAY 2017

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

Question

The trial balance of Prudent Limited included the following balances as at October 1, 2015:

Account	Amount (₦)
Trade receivables	1,564,000
Allowance for doubtful receivables	78,200

Required:
Prepare the ledgers for:

Receivables Account
Bad and Doubtful Debt Expense Account
Allowance for Doubtful Receivables Account
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debt, Doubtful Receivables, Ledger Accounts, Trade receivables
Level: Level 1

Topic: Bad and Doubtful Debts
Series: MAY 2016

Question Tag: Doubtful Receivables

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

Question Tag: Doubtful Receivables

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

You're reporting an error for "FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts"

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

You're reporting an error for "FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts"

FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts

Prepare the bad debts and allowance for doubtful receivables ledger accounts for Funke Limited.

You're reporting an error for "FA – May 2017 – L1 – SB – Q6c – Accounting Treatment for Bad and Doubtful Debts"

FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts

Prepare ledger accounts for receivables, bad and doubtful debts, and allowance for doubtful receivables.

You're reporting an error for "FA – May 2017 – L1 – SB – Q3a – Accounting Treatment for Bad and Doubtful Debts"

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

admin