S@IFURS UNIVERSITY COLLEGE

Total Marks: 12 Time Allowed: 10mins

1. For the year ended 31st December 2011 a companys receivables balance was $150,000. They had a general allowance of 5%. At the year ended 31st December 2012 the companys receivables are $135,000 the company would like to maintain a 5% general allowance. What is the impact on the statement of comprehensive income and how will the receivables be presented in the statement of financial position at the year ended 31st December 2012? Credit or charge to SCI.. Receivable on SFP..

2. At the beginning of the year, the allowance for receivable was $500. At the year-end, the allowance required was $900. During the year $600 of debts were written off, which includes $100 previously include in the allowance for receivables. What is the charge to income statement for receivables expense for the year? Credit or Charge to SCI .. 3. At 1 January 2012, there was an allowance for receivables of $3500. During the year, $1500 of debts was written off as irrecoverable, and $1300 of debts previously written off was recovered. At 31 December 2012, it was decided to adjust the allowance for receivables to 5% of receivables which are $20500. What is the total receivables expense for the year.
4. Ian has receivables at the year-end of $50,000. The opening balance on his allowance for receivables is $2,000. During the year Ian had written off a debt from George for $3,000. Ian subsequently received $2,000 from George which he has not yet recorded. Ian wishes to make the following specific allowances for receivables: a. b. c. Helen 1,000 Anna 800 Max 2,000

Ian has received $5,000 in respect of Bens debt which he had prov ided for last year. Ian has not accounted for this cash receipt. Based on past experience Ian wishes to set up a general allowance at a level of 5% of remaining receivables. Requirement: How much receivable balance should be reported on SFP and how much will be charged or credited to the SCI? Receivables on SFP.. Charged or credited to SCI