Reference no: EM132588206
Question 1: A company had a doubtful debt provision of N$14,000 at 31 December 2019. Its trade receivables at 31 December 2019 were N$198,200. The company considers that receivables totaling N$12,200 will not be paid and in addition planned to make a doubtful debts provision for 10% of its net receivables at 31 December 2019. What is the charge for bad and doubtful debts in the income statement for the year ended 31December 2019?
Question 2: A company purchased plant and machinery for N$900,000 on 1 January 2007. The company uses straight line depreciation. The company estimates that the plant and machinery will have a useful life of 8 years, after which it may be disposed of for N$100,000. What was the net book value of the plant and machinery at 31 December 2009?
Question 3: A restaurant had N$100 of cleaning supplies on hand at the beginning of the accounting period and purchased N$600 of cleaning supplies during the period. A physical inventory count showed N$200 of cleaning supplies on hand at the end of the period. The adjusting entry for supplies inventory at the end of the period would be
Select one:
a. Supplies Inventory 200 Supplies Expense 200
b. Supplies Expense 200 Supplies Inventory 200
c. Supplies Expense 600 Supplies Inventory 600
d. Supplies Expense 500 Supplies Inventory 500
e. Supplies Inventory 500 Supplies Expense 500
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