(a) The following information relates to the debtors of Jubilee usiness for each of the years shown : Year Debtors (After Bad Debts Debtors thought Bad Debts) written off Uncollectable 2015 900,000 53,800 67,940 2016 987,000 76,700 93,120 2017 896,500 64,230 71,650 Required: Show how the following accounts would appear for each of the years 2015 - 2017:- i Bad Debts Account ii Provision for Bad Debts Account iii Profit & Loss Account Extracts iv Balance Sheet Extracts

Identify principles of cash control Understand the requirement for allowance for doubtful debts Identify weaknesses of cash receipts situation Prepare adjusting entries for bad and doubtful debts Complete a bank reconciliation Prepare an ageing analysis for accounts receivable Recognition of revenue Explain the difference between the direct write off of a bad debt and the allowance method Students are required to prepare for all the questions prior to attending the tutorial. Question 1. (Based on E13.12) The Conceptual Framework defines revenues and outlines a number of criteria for their recognition. Surfin’ Magazines Ltd identifies the following independent transactions and events: (a) Received $24 000 in subscriptions for magazines to be delivered once per month for the next 12 months. (b) Received dividends from IAG for shares owned by the business. (c) Paid interest on a loan to purchase a delivery vehicle. (d) Delivered magazines for the month for customers who had paid in advance. Required: (i) Outline how the Conceptual Framework defines revenue. (ii) AASB15 requires the recognition of revenue to consist of 5 steps. Apply the 5 – step process as required in AASB15 to item (a) (iii) For each of the other items listed above, explain whether you would recognise it as revenue in the Income Statement and provide general journal entries to record the transaction.

The following details relate to Albert EnterpriseDebtors a/cbalance debitBad debts to bewritten offProvision fordoubtful debts31/12/2017 Shs100,000 Shs 8,000 10% of theremaining debtors31/12/2018 Shs 74,000 Shs10,000 8% of theremaining debtorsRequired :For each of the year ended 31/12/2017 and 31/12/2018, open the following ledgeraccounts and make the necessary adjustments in respect of bad debts and provision fordoubtful debts. Balance off the accounts.i)Debtors a/cii)Bad debts a/ciii)Provision for doubtful debts a/civ)Profit and loss a/c

The following accounts were taken from Cervantes Inc.’s balance sheet at December 31, 2018. DebitCreditAccounts receivableP4,100,000 Allowance for doubtful accounts100,000 Net credit sales P7,500,000 If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2018.Select one:a.P  23,000b.P223,000c.P225,000d.P123,000

These are summarized accounts maintained with debtors and creditors.1 puntoReceivablesAssetsLiabilitiesCapital

The following information relates to Tyrell Ltd for year 2022. Tyrell’s financial year end on 31 December: Total credit sales $800 000 Accounts receivable at 31 December 2022 60 000 Bad debts written off during 2022 4 500 Required (a) Prepare journal entries to record the bad debts expense at 31 December 2022 if Tyrell Ltd uses the direct write-off method of accounting for bad debts? (b) Assume that Tyrell Ltd decides to estimate its bad debts expense based on 8% of accounts receivable. Prepare journal entries to record the bad debts expense if allowance for doubtful debts account has a beginning (or unadjusted) credit balance of $4 000. (c) Assume the same facts as in part (b), except that there is a beginning (or unadjusted) debit balance of $1 200 in allowance for doubtful debts. Prepare journal entries to record the bad debts expense at 31 December 2022.