|
|
Trade Receivables Funding
Reliable trade receivables information
How much is Impairment loss of trade receivables?
The following trial balance was extracted from the ledgers of AV trading Company Limited on 31 December 2007.Debit $ Credit $10 % debenture 2015 issued in 2005 Cr 200,000Bank Cr 120,000Bank fixed deposits Dr 150,000Bank interest income Cr 2,000Bank overdraft interests Dr 1,000Cash Dr 5,000General reserve Cr 40,000Inventory, at 1 January 2007 Dr 180,000Management fees paid Dr 25,000Ordinary share capital $5 per share Cr 50,000Plant and machinery cost Dr 100,000Plant and machinery accumulated depreciation, at 1 January 2007 Cr 36,000Property cost Dr 800,000Property accumulated depreciation, at 1 January 2007 Cr 80,000Purchases Dr 1,690,000Purchases returns Cr 55,000Retained profit, at 1 January 2007 Cr115,000Salaries paid Dr 280,000Sales Cr 2,553,000Sales returns Dr 120,000Share premium Cr 150,000Trade payables Cr 190,000Trade receivables Dr 260,000Allowance for doubtful debt Cr 20,000Dr 3,611,000 Cr 3,611,000Additional information 1 Carrying amount of the closing inventory at 31 December 2007 was $480,000. 2 The allowance for doubtful debt was increased to $30,000 at 31 December 2007. 3 Depreciation for the year is to be provided as follows Plant and equipment 20 % per annum on reducing balanceProperty 5 % per annum on cost 4 At 31 December 2007, management fees paid in advance amounted to $5,000 andsalaries due amounted to $25,000. 5 The income tax for the year is estimated to be $150,000. 6 The directors proposed to pay a final dividend of $5 per share and to transfer $40,000from retained profit to general reserve. 7 There was no share issued during the year ended 31 December 2007.I know the answer the impairment loss of trade receivables is $10000, but I really don't know how to get it. Please help me find out. Thanks.
On an income statement would you include the following; loans, trade receivables & payables.?
Please help
On a balance sheet, is account receivable the same as trade receivables?
|
|
