Exam 8: Accounts Receivable and Further Record-Keeping

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000. It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500. It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. What was the journal entry needed to write off the debt of Houdini Ltd as irrecoverable?

Which of the following is NOT a purpose served by special journals?

Which of these items is the source document for the sales journal?

Which of the following statements about the Allowance for doubtful debts account is true?

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000. It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500. It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. What was the journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Houdini Ltd?

The Allowance for doubtful debts account would appear in the balance sheet under:

Which of the following statements about subsidiary ledgers and control accounts is NOT true?

The trial balance of Wentworth Ltd included the following balances: An account for $3000 was determined to be uncollectable. The journal entry to be made on that date would include a debit to:

Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2015, debtors owed $4000, and $7200 was owing to creditors. Transactions for year ended 30 June 2016 were as follows: What was the balance of the creditors control account at 30 June 2016?