Page 81 - Demo

Ch(3) : Accounting for Receivable78Prior to adjustments at 31stDecember, 2017the allowancefor doubtful debts showed a debit balanceof BD2,500.Required:1-Compute the estimated amount of Bad Debts.2-Show the Journal entry to maintain the provision for doubtful debts to the proper 3-Show the Journal entry to record write off BD 800.4-Show the Journal entry to record recovery BD 600.Exercise(3-7):WaseemCO. had the following transactions involving bad debts in 2019and 2020:December 31, 2019Records estimated Bad Debt Expense of BD8,500.May 05, 2020Wrote off Basam%u2019s account receivable of BD2,350 as uncollectible.September 02, 2020Basamwon money and paid the amount due.Required:Journalize the above transactions.Exercise(3-8):Sameh Trading Co. had the following balances on December, 31, 2009:Credit SalesBD850,000Cash Sales BD700,000Accounts ReceivableBD190,000Allowancefor Doubtful DebtsBD250(Credit Balance)Required:Record the Bad Debts Expensefor the year using each of the following methods for the estimate:1.Allowancefor doubtful debts is to be increased to 3% of Accounts Receivable.2.Bad debts expense is estimated to be 1% of sales on credit.