Accounting 2 Task 1:Accounts receivable is the amount payable by the customer to the company for the goodsdelivered and services provided. Accounts receivable is a current asset and it is any amount owedto the company by the customers for goods purchased on credit. Bills receivable and accountsreceivable are almost similar in nature and they are used interchangeably but in fact refers to theamounts payable to a business entity under the transaction of bills of exchange in a businesstransaction.Mr. Mohammed Al Mammari is accounting manager of Dhofar Beverage Company, havingdifferent branches around Sultanate of Oman. Mr. Mohammed Al Mammari wishes to explainabout accounts receivable accounting to his accounting executives and expects you to understandthe following relating to accounts receivable and prepare necessary journal entries andaccounting treatment for the year ended 31st December 2021.The company sells goods on RO 150,000 for cash and RO 300,000 on credit basis tovarious customers in the company. The company has received RO 50000 towards creditsales and the rest is receivable according to the terms of the business transaction.Later, the company has not received any money out of the rest of the credit sales anddecided to estimate the bad and doubtful debts at 2.5% of the total credit sales. Thecompany had allowance for bad and doubtful debts (credit balance) RO 3000.(a)Explain the concept of bad debts, allowance for doubtful debts and bills receivable.(b)Prepare journal entries and show how it will appear in income statement and balancesheet.

Bad Debts : Bad is the amount of accounts receivable which is certain that this shall not be…

Task 1: Accounts receivable is the amount payable by the custome delivered and services provided. Accounts receivable is a curre to the company by the customers for goods purchased on cr receivable are almost similar in nature and they are used interc amounts payable to a business entity under the transaction transaction. Mr. Mohammed Al Mammari is accounting manager of DE different branches around Sultanate of Oman. Mr. Mohamm nhout accounts raceivable accounting to his accounting evecuti

Task 1: Accounts receivable is the amount payable by the custome delivered and services provided. Accounts receivable is a curre to the company by the customers for goods purchased on cr receivable are almost similar in nature and they are used interc amounts payable to a business entity under the transaction transaction. Mr. Mohammed Al Mammari is accounting manager of DE different branches around Sultanate of Oman. Mr. Mohamm nhout accounts raceivable accounting to his accounting evecuti

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 3MC: If a customer pays with a credit card and the service has been provided, which of the following...

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Accounts receivable is the amount payable by the customer to the company for the goods delivered and services provided. Accounts receivable is a current asset and it is any amount owed to the company by the customers for goods purchased on credit. Bills receivable and accounts receivable are almost similar in nature and they are used interchangeably but in fact refers to the amounts payable to a business entity under the transaction of bills of exchange in a business transaction. Mr. Mohammed Al Mammari is accounting manager of Dhofar Beverage Company, having different branches around Sultanate of Oman. Mr. Mohammed Al Mammari wishes to explain about accounts receivable accounting to his accounting executives and expects you to understand the following relating to accounts receivable and prepare necessary journal entries and accounting treatment for the year ended 31st December 2021. • The company sells goods on RO 150,000 for cash and RO 300,000 on credit basis to various…
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