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The following questions contain both ADD increases and decreases.
Q1)
In the trial balance:
DR
CR
Accounts Receivable
12400
Allowance for doubtful debts
670
The business wants to create an allowance for doubtful debts of
4%
a)
What is the allowance for doubtful debts required this year?
b)
Is this an increase (I) or a decrease (D) in the allowance for doubtful debts?
c)
Which part of the income statement is affected revenues "R" or expenses "E"?
b)
What is the increase/decrease in doubtful debts required?
c)
Fill in the partial income statement below:
d)
Fill in the partial balance sheet below:
Current Assets
Accounts Receivable
Q2)
In the trial balance:
DR
CR
Accounts Receivable
24500
Allowance for doubtful debts
2300
The business wants to create an allowance for doubtful debts of
12%
a)
What is the allowance for doubtful debts required this year?
b)
Is this an increase (I) or a decrease (D) in the allowance for doubtful debts?
c)
Which part of the income statement is affected revenues "R" or expenses "E"?
b)
What is the increase/decrease in doubtful debts required?
c)
Fill in the partial income statement below:
d)
Fill in the partial balance sheet below:
Current Assets
Accounts Receivable
Q3)
In the trial balance:
DR
CR
Accounts Receivable
35400
Allowance for doubtful debts
4500
The business wants to create an allowance for doubtful debts of
6%
a)
What is the allowance for doubtful debts required this year?
b)
Is this an increase (I) or a decrease (D) in the allowance for doubtful debts?
c)
Which part of the income statement is affected revenues "R" or expenses "E"?
b)
What is the increase/decrease in doubtful debts required?
c)
Fill in the partial income statement below:
d)
Fill in the partial balance sheet below:
Current Assets
Accounts Receivable
Q4)
In the trial balance:
DR
CR
Accounts Receivable
14300
Allowance for doubtful debts
2300
The business wants to create an allowance for doubtful debts of
4%
a)
What is the allowance for doubtful debts required this year?
b)
Is this an increase (I) or a decrease (D) in the allowance for doubtful debts?
c)
Which part of the income statement is affected revenues "R" or expenses "E"?
b)
What is the increase/decrease in doubtful debts required?
c)
Fill in the partial income statement below:
d)
Fill in the partial balance sheet below:
Current Assets
Accounts Receivable
Q5)
In the trial balance:
DR
CR
Accounts Receivable
56700
Allowance for doubtful debts
4800
The business wants to create an allowance for doubtful debts of
9%
a)
What is the allowance for doubtful debts required this year?
b)
Is this an increase (I) or a decrease (D) in the allowance for doubtful debts?
c)
Which part of the income statement is affected revenues "R" or expenses "E"?
b)
What is the increase/decrease in doubtful debts required?
c)
Fill in the partial income statement below:
d)
Fill in the partial balance sheet below:
Current Assets
Accounts Receivable
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