PASS ACTIVITIES

Facilitator: Nicholas
Year: 2019
Semester 2 — week: 7
Unit of Study: ACCT1006
References: Lecture slides week 6, Previous PASS materials
Disclaimer: Please don't take PASS materials to your lecturer/tutor! “What happens in PASS stays in PASS…”

PROPOSED AGENDA LEARNING OUTCOMES

1. Welcome (5 mins) 1. Understand how to account for receivables.
2. Activity 1: Concept (15 mins)
3. Activity 2: Practical Question (25 mins)
4. Close (5 mins)

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Let’s first look at the bigger picture!

Activity 1: Concept
Fill in the chart. List some benefits / problems of each method.

Methods for
estimating DOUBFUL
DEBT ALLOWANCE
Methods used to
account for BAD
DEBTS

PASS is looking to recruit energetic, friendly, and high-achieving individuals to facilitate sessions in the 2019 team. Positions
are paid, flexible to suit your timetable and are a great opportunity to develop important graduate attributes. If you want
a complete university experience that will help you nail those tough interview questions, provide on-going professional
development and be well regarded by recruiters apply to be a PASS facilitator in 2019!
Applications close at 10am, Friday 14th September. To help with the application process, we will be holding a Selection
Criteria Workshop. It’s a chance to learn how to submit the best quality application that specifically addresses the PASS
selection criteria. It will be held in ABS Case Study Lecture Theatre 2140, at 12-2.00pm on Thursday 30th August 2018.
Activity 2: Receivables

As at 30th September 2017, the account balances of Kardashian Kars is as follows:

Accounts receivable 300,000 DR;
Allowance for Doubtful Debts 8,000 CR;

Record the following journal entries that occurred in October and November 2017.

1. 3rd October - Received $300 from Jacques Webster for a credit purchase from the 10th September; the
receivable was not previously written off.

2. 8th November – Wrote off the $1,000 accounts receivable from Scott Disick, the $3,000 accounts
receivable from Kylie Jenner and the $780 accounts receivable from Justin Bieber.

3. 10th November – Received $3,000 from Kylie Jenner, originally written off on the 8 th November.

4. At 31st December, Bad Debts Expense needs to be recorded. Calculate it based on the ageing of
accounts receivable method.

Acc Rec 31/12 1 – 30 days 31 – 60 days 61 – 90 days 90+ days

320,000 220,000 70,000 20,000 10,000
% bad 0.5% 4% 8% 40%

Hint – it is recommended to construct a t-account!

DISCLAIMER: PASS materials (e.g., activities/ questions/practice quizzes) have been developed by the PASS team using a range of
resources. Unlike lecture and tutorial materials, the content has not been developed in collaboration with lecturers and it does not have
the status of “formal course content”. Rather, it is based on common questions from students and your facilitator’s experiences. PASS
materials are only intended for PASS sessions and are not to be taken to lecturers or tutors. PASS material is not necessarily representative of
assessable/examinable content but does provide opportunities to deepen and apply your learning in specific unit of studies. For specific
advice on examinable content ALWAYS consult with your lecturers. The PASS team do not know what is on exams and cannot comment
on assessable materials at any time. It is not ethical for PASS facilitators to share their knowledge of the exams they have sat in the past, to
advantage PASS participants against people who do not come to PASS. The PASS management team have instructed PASS facilitators
not to provide such information at anytime.
BONUS Question

At 30 September 2015, the accounts of Julie’s Jams Ltd were as follows:

Accounts Receivable $143 000 DR
Allowance for bad debt $ 3 200 CR

Record the required journal entries that occurred from October to December 2015.
a) Nov 20 – received $1500 from Kate for a credit purchase 20 days ago. This receivable was not
written off previously.

b) Dec 25 – Wrote off the $1500 accounts receivable from Luke, the $1100 account receivable from
Varun, and the $1000 account receivable from Johnny

c) Dec 27 – Receive $1 000 from Johnny originally written off on December 25.

d) Dec 31 – Recorded bad debt expense based on ageing of accounts receivable as follows (Note –
you will need to calculate the bad debts expense, a T-account may help you!)

Accounts Rec (31 Dec) 1-30 Days 31-60 Days 61-90 Days 90+ Days
$163 000 $100 000 $40 000 $14 000 $9 000
Est. % Bad 0.1% 1% 10% 30%

Close
Next Week: Ethics – See you then! Have a great week!
DISCLAIMER: PASS materials (e.g., activities/ questions/practice quizzes) have been developed by the PASS team using a range of
resources. Unlike lecture and tutorial materials, the content has not been developed in collaboration with lecturers and it does not have
the status of “formal course content”. Rather, it is based on common questions from students and your facilitator’s experiences. PASS
materials are only intended for PASS sessions and are not to be taken to lecturers or tutors. PASS material is not necessarily representative of
assessable/examinable content but does provide opportunities to deepen and apply your learning in specific unit of studies. For specific
advice on examinable content ALWAYS consult with your lecturers. The PASS team do not know what is on exams and cannot comment
on assessable materials at any time. It is not ethical for PASS facilitators to share their knowledge of the exams they have sat in the past, to
advantage PASS participants against people who do not come to PASS. The PASS management team have instructed PASS facilitators
not to provide such information at anytime.
DISCLAIMER: PASS materials (e.g., activities/ questions/practice quizzes) have been developed by the PASS team using a range of
resources. Unlike lecture and tutorial materials, the content has not been developed in collaboration with lecturers and it does not have
the status of “formal course content”. Rather, it is based on common questions from students and your facilitator’s experiences. PASS
materials are only intended for PASS sessions and are not to be taken to lecturers or tutors. PASS material is not necessarily representative of
assessable/examinable content but does provide opportunities to deepen and apply your learning in specific unit of studies. For specific
advice on examinable content ALWAYS consult with your lecturers. The PASS team do not know what is on exams and cannot comment
on assessable materials at any time. It is not ethical for PASS facilitators to share their knowledge of the exams they have sat in the past, to
advantage PASS participants against people who do not come to PASS. The PASS management team have instructed PASS facilitators
not to provide such information at anytime.