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Flowing business transactions:
A- if a business sells products for $ 190000 on credit.B- 25% of the balance is recived cash and 10% by cheque.
C- 5% of the balance has become irrecoverable and written off.
D- a provision of 5% is made for the remaining balance, in year one and 3% in year two where the balance remained unchanged.
required to pass journal entries to accommodate the above transactions
Please do not ask full questions and expect a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer – then I will help you.
All a journal entry is is writing the debits and credits in works instead of in t-accounts. So for A, for example, if we sell goods on credit we debit receivables and credit sales with $190,000. So this is the journal entry!
Do watch my free lectures because everyone in B, C and D is explained with examples in my lectures (in the lectures on irrecoverable and doubtful debts) and you cannot expect me to write out all of my lectures here 🙂
The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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