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College of Business, Hospitality and Tourism Studies School of Accounting ACC406 Accounts Receivable and Credit Control Major Assignment -INDIVIDUAL...

This question was answered on Jul 20, 2016. View the Answer

June 1 Balance in the allowance for doubtful debts account is $2100

June 5 After concerted effort to collect, an accounts receivable of $1125 for susan was written off as bad debt.

June 15 susan unexpectedly paid $875 of the amount of her debt written off

 June 30 An appropriate adjusting entry is made to the allowance for doubtful debts. Sales for the year ended 30th June were $800,000, 25% of which are cash. Required :

Record above transactions in general journal and prepare income statement and balance sheet to show the accounts that would exist.

College of Business, Hospitality and Tourism Studies School of Accounting ACC406 Accounts Receivable and Credit Control Major Assignment –INDIVIDUAL ASSIGNMENT Weighting: 20% of Overall Assessment DUE DATE: 29 th July 2016 Total Marks: 50 WEIGHTING: 20% Instructions: 1. Assignment should be typed. Use Times New Roman as Font type with font size of 12 and 1.5 line spacing. 2. Write your ID Number and Full Name Clearly when submitting the assignment. Note: A penalty of 10% per day of the allocated weighting applies to all late submission. Question 1: Some businesses sell their goods on credit to customers. However, these customers do not pay on time or do not pay at all. State 3 steps businesses can take to receive early payments from customers. (5 marks) Question 3: 'Control over receivables is not quite as important as control over cash.' Discuss. (5 marks) 1
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Question 4: Accounts Receivable Internal Control 10 Marks The bookkeeper of a small but growing bread company prepared bills to be sent to customers and was responsible for collecting payments. Sales were growing through the acquisition of new customers and increasing sales to existing ones. A surprise internal audit revealed, however, that bank deposits were not as large as would have been expected considering the rate of sales growth. An examination of customer copies of sales invoices revealed that the amounts being billed were higher than the amounts being recorded in the cash receipts journal for the same transaction. Office copies of the invoices had been altered to reflect the falsified journal entry. The bookkeeper had stolen more than $15,000 over a period of a year before the fraud was discovered. The bookkeeper was dismissed and agreed to repay the money in order to avoid having the matter brought to the attention of the police. Required: 1) State and explain two possible internal control weaknesses that were present in the case study. (5marks) 2) Suggest and explain three internal control procedures that can help minimize or prevent the risk of fraud in accounts receivable. (5marks) Question 5: Bad and Doubtful Debts_______________________ (15 marks) Susan's Agriculture Supplies Ltd uses the net credit sales method for estimating doubtful debts. It is estimated that 2% will be uncollectable. You have been provided with the following information. Ignore GST. June 1 Balance in the Allowance for Doubtful Debts account is $2100. June 5 After concerted effort to collect, an accounts receivable of $1125 for Susan was written off as a bad debt. June 15 Susan unexpectedly paid $875 of the amount of her debt written off on 5 June. June 30 An appropriate adjusting entry is made to the allowance for doubtful debts. Sales for the year ending 30 June were $800,000, 25% of which are for cash. Required A. Record the above transactions in general journal. ( 5 marks) 2
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Hello Mocelesi, I have... View the full answer

Major assignment.docx

Qsn 1. a. Create clear and timely invoices.
b. Proactively manage your accounts, make Calls and offer discounts for fast payment.
c. Use a collection agency
Qsn 3.
Control for receivables involves...

2 comments
  • hello AND BULA :) Thankyou so much for your help and it was really helpful of you. May god bless you
    • mocelesi
    • Jul 21, 2016 at 12:25am
  • Welcome, you can follow me for future assignments
    • maryannekoki16
    • Jul 21, 2016 at 12:40am

This question was asked on Jul 19, 2016 and answered on Jul 20, 2016 for the course ACCOUNTING 406 at Fiji National University.

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