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1. Fort Simpson Co. had record sales in 2015. The following information relates to Accounts Receivable activity during 2015: Transaction / Balance Amount A/R balance at January 1, 2015 AFDA balance at January 1, 2015 Credit Sales 2015 Cash collected related to credit sales in 2015 (including $4,000 from write-off) Account write-offs Recovery of account written off - Sept. 2015 Monthly bad debt expense calculated at rate 0 S$475,000 33,000 CR. 6,675,000 6,568,500 35,500 4,000 005% of monthly credit sales The following is the aged listing of receivables at December 31, 2015 prepared by the controller Amount of Receivables Days accounts outstanding Less than 16 days 16-30 days 31-45 day:s 46-60 days 61-75 days Greater than 75 days $270,000 117,000 80,000 38,000 20,000 25,000 $550,000 Probability of Collection 97% 92% 80% 70% 50% 0% Required: 10 marks] Reconcile the Accounts Receivable account for 2015 i.e. what amounts were debited and credited to the account during the year to get to an ending balance of S550,000] [3 marks] Calculate the December 31, 2015 balance in the Allowance for Doubtful Accounts [4 marks] Prepare the adjusting entry required to bring the Allowance for Doubtful Accounts to the correct balance at December 31, 2015 marks] Show how the accounts receivable would be presented on the December 31, 2015 statement of financial position (Fort Simpson follows IFRS) [2 mark] a. b. c. d

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