Q1. Discuss with your own examples the two methods of accounting for receivables and the two methods for estimating bad debts. (Note: Examples must include Journal entry)
Q2. X Company has the following receivables classified into individually significant and all other receivables.
All other receivables
X company determines that P’s receivable is impaired by $20,000, and S’s receivable is totally impaired. Both Q’s and R’s receivables are not considered impaired. X company also determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.
Required: Calculate the total impairment on accounts Receivable
Q3. Rex Company’s record of transactions for the month of September was as follows.
|Sep 1||(Balance on hand) 100||$5.00||Sep 5||300|
|Sep 4||400||5.10||Sep 12||200|
|Sep 11||300||5.30||Sep 27||800|
|Sep 18||200||5.35||Sep 28||150|
|Total units (ending inventory) 350|
Compute the ending inventory at September 30 on each of the following on periodic bases.
Q4. Explain the concept of LCNRV and its applicability to Agricultural Inventory and
Q5. Give examples for Gross profit and retail Methods of Estimating Inventory.