Transcribed Image Text: Question 2 (7 marks) (Note ts question is from the Week 6 Tutorial) Beacon Limited had the following

Excerpt
5 per cent of accounts receivable. Required: 1) Prepare journal entries for these transactions. (5 marks) 2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019: a) Accounts receivable (1 mark) b) Allowance for doubtful debts (1 mark)

Transcribed Image Text: Question 2
(7 marks)
(Note ts question is from the Week 6 Tutorial)
Beacon Limited had the following trial balance as at 1 January 2019, as shown in the table below:
Account
Debit $
Credit $
Cash
250 000
Accounts receivable
600 000
Inventory
730 000
Prepaid insurance
60 000
Prepaid rent
50 000
Equipment
1 500 000
Allowance for doubtful debts
20 000
Accumulated depreciation
500 000
Accounts payable
700 000
Revenue received in advance
120 000
Income tax payable
530 000
Loan
600 000
Share capital
400 000
Retained profits
320 000
3 190 000
3 190 000
You are given the following additional information for the year ended 31 December 2019:
a) Bad debts of $14,380 were written off.
b) It was decided that allowance for doubtful debts should be 5 per cent of accounts receivable.
Required:
1) Prepare journal entries for these transactions. (5 marks)
2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019:
a) Accounts receivable (1 mark)
b) Allowance for doubtful debts (1 mark)

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