Solution-How do calculate the ending balance of each account

How do calculate the ending balance of each account

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Reference no: EM132741280

MaLi Ltd follows the Allowance method for valuing its receivables. During the year, $11,500 of accounts receivable-the figure includes GST-were written off. The GST portion is recoverable from Inland Revenue (the government).

Problem a) Prepare the journal entry to record the write-off

Ignore GST. At the beginning of its financial year, Weez Ltd reported normal balances of $100,000 and $2,000 for Accounts Receivable and Allowance for Doubtful Accounts, respectively. During the year, credit sales were $900,000, sales discounts were $10,000, cash received from customers was $850,000, total write-offs were $5,000, and write-off recoveries were $3,000.

Problem b) Using the "T" account format, enter the beginning balances of Accounts Receivable and Allowance for Doubtful Accounts, post the above events, and calculate the ending balance of each account. Cross-referencing is not required.

Reference no: EM132741280

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How do calculate the ending balance of each account

Reference no: EM132741280

Reference no: EM132741280

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