Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. define inventories as per ias-2? on january 1st

Define Inventories as per IAS-2? On January 1st 2020, the Ultima Inc has...

50.1K

Verified Solution

Question

Accounting

Define Inventories as per IAS-2?

On January 1st 2020, the Ultima Inc has normal balance of accounts receivable and allowance for bad debts of Rs.3,30,000 and Rs.23,000. Ultma recorded total sale of 9.5 million including credit sale of (1701 x 1000). During the period end other information is as follows:

  • Sales return of Rs. 50.5k
  • Sales Discount of Rs.10k
  • Cash Collection of Rs.2.9 million

Following accounts are proved to be bad debts;

Smith whose account of Rs. 30,000 was written off in the last year paid Rs.20k as final payment of the debt. Ultima also written off various bad debts of Rs.50k during the year and recovery of written off accounts receivable other than smith are Rs.3.3k.

Required: Pass journal entries for the period ended on 31st December 2020 and adjusting entry for uncollectible accounts expense assuming rate of allowance for bad debts is 0.08.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

In a population of 10 000 there are 5000 nonsmokers 2500 smokers of one pack...

Mechanical Engineering
1.2K views

A seismic instrument (a mass connected to a spring and a damper) is employed to record...

Physics
1.2K views

A square plate has a moment of inertia I about an axis lying in the...

Physics
1.2K views

If an object is placed at a distance of 30 cm from a lens a...

Geometry
1.2K views

Steve is buying a farm and needs farm Steve who is 5 feet tall not...

Accounting
1.2K views

In 2024, Bancroft Company was the victim of a serious data breach. Due to the...

Accounting
1.2K views

On December 1, Daw Co. accepts a $44,000, 45-day, 12% note from a customer. (1)...

Accounting
1.2K views

During 2021, a company sells 25 units of inventory. The company has the following inventory...

Accounting
1.2K views

Denton Company manufactures and sells a single product. Cost data for the product are given:...

Accounting
1.2K views

Riverbed Corporation had the following 2025 income statement. RIVERBED CORPORATION Statement of Cash...

Finance
1.2K views

Hel 7 What is the value of a perpetuity that pays $100 every 6 months...

Finance
1.2K views

A bond has $2,000 face value, 26 years to maturity, and 5.4% annual coupon rate...