Hi

Could you please help me with answers, as i lose my Solution paper to my course test ) i gave answers but do not know if they are right )

And please help me with allowance for receivable (bad and doubtful debts) i can not understand this theme. I can not get it, how to calculate.

Ok lets go

1.

Bow Ltd had a receivables balance of $6,000 at 31 December 2010. During the year $500 was received from a debtor previously written off, and specific debt of $1,000 was provided for. The general provision brought down as at 1 January 2010 was $1,000 and a provision of 5% is to be maintained

The bad and doubtful debts credit for the year ended 31 December 2010 is ?


2.

On 1 April 2009 a sole trader paid 2,860 in rates for the year ending 31 March 2010. This was an increase of 10% on the charge for the previous year

The correct charge for rates in her income statement for the year ended 31 December 2009 is ?

3.

Bouncy Balls has 40 units of its special spongy balls in inventory as at 30 November 2007. The product costs $5 per unit to manufacture and can be sold for $15 per unit. Half of the units in inventory at the year end have been damaged and will require rectification work costing $10 per unit before they can be sold. Selling costs are $1 per unit.

The value of inventory at 30 November 2007 is ?

4.

Panther owns her own business selling Gladiator dolls (woow:) to department stores. At 30 June 2007 she had the following balances in her books:

Receivables - $31,450
Allowance for doubtful debts (General) - $ (450)
(as at 1 July 2006)
Total - $31,000

A balance of $1,000 due from Selfrodges Ltd is considered irrecoverable and is to be written off. Horrids Ltd was in financial difficulty and Panther wished to provide for 60% of their balance $800. She also decided to make a general provision of 10% on her remaining receivables.

The allowance for doubtful debts in her balance sheet at 30 June 2007 should be ?