Tutorial Activity

Q1. Accounts Receivable (opening balance) = $120,000

Received from credit customers = $90,000

Bad Debts =$10,000

Closing Balance = $100,000

Calculate Credit sales from the information given above

Q2. Trade Receivable control account (Opening balance) =$90,000

Cash received for credit sale =$70,000

Irrecoverable debts =$5,000

Closing balance =$100,000

Calculate Credit sale from the information given above

Q3. Explain the following terms

(a) Bad Debts

(b) Allowances for Bad Debts
(c) FIFO