PT ABC shows these balances at beginning 2019 (in Rp000): Piutang usaha Penyisihan piutang tak tertagih Accounts Receivable Allowance for doubtful accounts (AFDA) 201.000 9.000 Cr During 2019, it had the following balances: Penjualan bersih non-tunai Net credit sales Penagihan piutang usaha Penghapusan piutang tak tertagih Penagihan piutang usaha yang telah dihapus 820.000 Collection of receivables 763.000 Written off uncollectible AR 7.300 AR previously written off as uncollectible was recovered 3.100
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
1. Prepare the entry to record the write-off of
uncollectible accounts during 2019.
2. Prepare the entries to record the recovery of
the uncollectible account during 2019
3. Prepare the entry to record
(BDE) at the end of 2019. Ending balance of
AFDA was Rp18,200 (Cr.)
4. Determine the ending balance of Accounts
Receivable as of December 31, 2019.
5. What is the net realizable value of the
receivables at the end of 2019?
6. The company has a notes receivable of
Rp24,000 at January 15, 2019 for 3 months at
10% interest rate. Prepare
April 15, 2019, on its due date.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
