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8 marksBad Debts and Provisions for Doubtful Debts

CSEC Principles of Accounts · January 2010 · Paper 2 · Question 4(a)

The Garrifruit Company maintains a provision for bad debts of 2% of year-end debtors. Year-end debtor balances are given for 2007 (25 000), 2008 (27 500), and 2009 ($22 500).

Prepare the Provision for Bad Debts Account for the three years.

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Other parts of this question

  1. 4(b)(i)Prepare the Rent Expense Account, clearly showing the amount to be transferred to the Income Statement.[5 marks]
  2. 4(b)(ii)Prepare the Commission Revenue Account, clearly showing the amount to be transferred to the Income Statement.[5 marks]
  3. 4(c)Show the Classified Balance Sheet Extract at December 31, 2009 for the Prepaid Rent and Accrued Commission Revenue.[2 marks]

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