ACCT1501 Practice Exam Questions & Solutions
QUESTION 1 ACCOUNTS RECEIVABLES (10 marks)
January 2013, SSS Ltd. has a debit balance of $30,000 in Accounts
Receivable and a credit balance of $ 4,500 in the Allowance for Doubtful
On 1st July, 2013, one of SSS’s customers, BBB, went bankrupt. BBB owes
SSS $2,500 and there is no hope for recovering this amount.
October 2013, SSS collected $85,000 from outstanding accounts. SSS
Ltd’s financial year ends on 31
During the year to 31 December 2013, SSS sold goods for cash for $22,000,
and on credit for $80,000.
If bad debts expense for 2013 is recognised based on 2% of credit sales, prepare
the entry to record bad debts expense. (3 marks)
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3 marks: 1 mark for each account name, 1 mark for
Calculate the net accounts receivable after recognising the bad debts expense. (3