Exam 8: Accounts Receivable and Further Record-Keeping

Wrigley Ltd uses subsidiary ledgers for debtors and creditors.At 1 July 2015 debtors owed $7000 and creditors were owed $4000.Transactions for year ended 30 June 2016 were as follows: - What was the balance of the debtors control account at 30 June 2016?

Wrigley Ltd uses subsidiary ledgers for debtors and creditors.At 1 July 2015 debtors owed $7000 and creditors were owed $4000.Transactions for year ended 30 June 2016 were as follows: - What was the balance of the creditors control account at 30 June 2016?

A credit balance in a customer's account in the debtors' ledger could be due to:

The trial balance of Allen Ltd at balance date showed a credit balance of $80 000 in the Allowance for doubtful debts account.Although the account of a customer standing at $16 000 had been determined to be uncollectable,this had not been written off.What was the effect of this neglect on the year-end balance sheet?

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

The trial balance of Anderson Ltd included the following balances: On 1 October 2016,an account for $1600 was determined to be uncollectable.The journal entry to be made on that date would include a debit to:

Management uses the ageing approach method to calculate the allowance for doubtful debts.An analysis of the ageing of accounts receivable shows a substantial increase in the accounts receivable in the over-90-days category.Management does not adjust the allowance for doubtful debts at year-end.As a result:

At 30 June 2016 Shifty Ltd had a balance of Accounts receivable of $90 000 and an Allowance for doubtful debts of $4000.It was decided to write off the debt of Wriggler,totalling $2500,as irrecoverable.It was further decided that the Allowance for doubtful debts should stand at 5 per cent of Accounts receivable.What was the journal entry needed to write off the debt of Wriggler as irrecoverable?

S Ltd has the following balance sheet information on 28 February 2016: $ On 28 February 2016,the company receives notification from R Ltd that it has filed for bankruptcy.The controller of S Ltd decides to write off R Ltd's account for $10 600.Which of the following statements is true?