Analyse the above and prepare the necessary 31 December 2018 adjusting journalentries to describe the information provided. No narrations required.Wages and salaries are due but still remained unpaid at 31 December2018, $7,550. This amount has not been included in the wages and salariesfigure shown in the unadjusted trial balance above.(5) The company estimated that as at 31 December 2018, 4% of accountsreceivable will be uncollectible.(6) No depreciation has been charged for the year ended 31 December 2018.The company depreciates non-current assets held at 31 December 2018as follows:-- Warehouse: Assuming straight line over 20 years.-- Motor vehicles: Assuming a five-year life span and the doubledeclining balance depreciation. All motor vehicles are assumed tohave no residual value. Click & Save Pte Ltd is an e-commerce company that offers online shopping in books,stationeries, music, videos, electronics, software, and fashion products in Singapore.Following is the unadjusted trial balance of Click & Save Pte Ltd as at 31 December2018.Debit (S)Credit (S)Share capitalRetained earnings, 31 December 2017300,00082,500Warehouse at cost465,000Motor vehicles at cost300,000Provision for depreciation• Warehouse• Motor vehiclesCost of goods soldSales75,0001,691,1002,775,900General expensesWages and salaries62,400538,200Allowance for doubtful debts3,600Accounts receivable222,600Accounts payable174,900Bank37,950Bank Loan150,000InventoryRent received in advance245,7004,800Interest expense3,7503,566,7003,566,700You are given the following additional information:

Adjusting journal entries: Particulars Debit Credit Wage and Salaries Expense a/c To…

Analyse the above and prepare the necessary 31 December 2018 adjusting journal entries to describe the information provided. No narrations required. Wages and salaries are due but still remained unpaid at 31 December 2018, $7,550. This amount has not been included in the wages and salaries figure shown in the unadjusted trial balance above. (5) The company estimated that as at 31 December 2018, 4% of accounts receivable will be uncollectible. (6) No depreciation has been charged for the year ended 31 December 2018. The company depreciates non-current assets held at 31 December 2018 as follows: -- Warehouse: Assuming straight line over 20 years. -- Motor vehicles: Assuming a five-year life span and the double declining balance depreciation. All motor vehicles are assumed to have no residual value.

Analyse the above and prepare the necessary 31 December 2018 adjusting journal entries to describe the information provided. No narrations required. Wages and salaries are due but still remained unpaid at 31 December 2018, $7,550. This amount has not been included in the wages and salaries figure shown in the unadjusted trial balance above. (5) The company estimated that as at 31 December 2018, 4% of accounts receivable will be uncollectible. (6) No depreciation has been charged for the year ended 31 December 2018. The company depreciates non-current assets held at 31 December 2018 as follows: -- Warehouse: Assuming straight line over 20 years. -- Motor vehicles: Assuming a five-year life span and the double declining balance depreciation. All motor vehicles are assumed to have no residual value.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 5CP

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