a. 1.

Sales and receivable are entered at gross selling price

3-Jun Account receivable - Arquette £ 2,000
Sales £ 2,000
12-Jun Cash £ 1,960
Sales Discount ( 2000 × 2% ) £ 40
Account Receivable - Arquette £ 2,000

2. Sales and receivable are entered at nmet of cash discount

3-Jun Account receivable - Arqutte £ 1,960
Sales ( 2000 × 98% ) £ 1,960
12-Jun Cash £ 1,960
Account receivable - Arquette £ 1,960

b. Prepare the journal entry under basis (a)(2), assuming that Arquette Company did not remit payment unti
29-Jul Cash £ 2,000
Account receivable - Arquette £ 1,960
Sales Discount forfeited £ 40
ny did not remit payment untill July 29
a.

b.
 Account Debit Credit
Bad Debt Expense € 3,000
Allowance for Doubful Accounts € 3,000

Bad Debt Expense € 4,500

Allowance for Doubful Account € 4,500
a.

b.

c.
 Account Debit Credit
Allowance for Doubtful Accounts £ 8,000
Account Receivable £ 8,000

Account Receivable £ 900,000

Less: Allowance for Doubtful Account £ 40,000
Net realizable value £ 860,000

Account Receivable £ 892,000

Less: Allowance for Doubtful Account £ 32,000
Net realizable value £ 860,000
a.

b.
 Account Debit Credit
Bad Debt Expense $ 4,950
Allowance for Doubtful Accounts $ 4,950

Bad Debt Allowance $ 2,250

Allowance for Doubtful Accounts $ 2,250
1

4
Cash ¥ 18,000
Loss on sale ¥ 2,000
Account receivable ¥ 20,000

Cash ¥ 50,600
Finance charge ¥ 4,400
Loan Payable ¥ 55,000

Bad debt expense ¥ 5,850

Allowance for doubtful debt account ¥ 5,850
( Allowance for doubtful account at 5% at guess
account receivable is maintaned)

Bad debt Expense ¥ 4,750

Allowance for Doubtful Debt Account ¥ 4,700
( New account for Doubtful Deb Account is maintaned
Account receivable £ 200,000
Allowance for doubtful account £ 190,000
Credit Loss £ 10,000
a.

b.
Menurut IASB, yang menentukan piutang dialih
penjualan adalah berdasarkan pada evaluasi apakah penjual telah mentransfer
secara subdtensial seluruh resiko dan manfaat kepemilikan piutang. Jika dialihkan
maka piutang tersebut dihentikan pengakuannya mungkin saja terjadi karena
tidak ada jaminan

Cash € 235,000
Due from factor ( 250.000 × 4%) € 10,000
Loss on sale of receivable ( 250.000 × 2% ) € 5,000
Account receivable € 250,000