T-
CarA/c
DR CR
Car$1000
Salesa/c
DR Cr Services(sales) $50,000
rrr
Loana/c
DR Cr
loan $1000
ddd
Renta/c
DR CR
Rent$1000
Creditors a/c
DR CR
AccountReceivables $500
(Creditors)
Debtorsa/c
DR CR
AccountReceivable $100
(Debtors)
TrialBalance
ACCOUNT DR CR
Car $1000
Sales$50000
Rent$1000
Loan $1000
Creditors $500
Debtors $100
BalanceSheet
X-account
BalanceSheet
DRas at (date)CR
FixedAssets
Car1000 Sales $50000
CurrentAssets loan$1000
Rent$1000
Debtors $100
Bal c/d$48900
$51000 $51000
Balb/d $ 48000
IncomeStatement
Forthe period ended………
Sales $50000
Expenses
Rent($1000) $1000
NetProfit49,000
2.Receivables Balances
0-30days $1,000 x 10%= $100
31-60days2,000 x20 = 400
61-90 days 4,000 x30% = 1,200
$1,700
DaysAccount Debit Credit
0-30 Bad debt expense $100
Allowancefor doubtful accounts $100
31-60 Bad debt expense $400
Allowancefor doubtful accounts $400
61-90 Bad debt expense $1200
Allowancefor doubtful accounts$1200
3.AnnualDepreciation Expense = (Cost of Asset – Salvage Value)/EstimateUseful Life
X=(100000-1000)/10
AnnualDepreciation expense = $9900
References
Edwards,J. R. (2013). AHistory of Financial Accounting (RLE Accounting)(Vol.29). Routledge.