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3 (a). Following is the aging schedule of Zahir Company as of December 31, 2019. (Marks 6)
| | | Not Yet Due | Days Past Due |
| Name of Customers | Total Balance | 1-30 | 31-60 | 61-90 | Over 90 |
| Umer Sons | 17,100 | 9,000 | 5,400 | - | 2,700 | - |
| Ishaq Brothers | 25,200 | 14,400 | - | 7,200 | - | 3,600 |
| YMC Company | 3,600 | - | 3,600 | - | - | - |
| Muna Services | 14,400 | 7,200 | - | 2,700 | 4,500 | - |
| Ali Company | 23,400 | 18,000 | - | - | - | 5,400 |
The company has estimated 2%, 4%, 20%, 30% and 50% of bad debts in each time category of the account receivables.
You are required to:
- Compute the amount of estimated uncollectable account.
- Record the adjusting entry assuming that Allowance for Bad Debts currently has OMR 6.300 credit balance.
- Record the adjusting entry assuming that Allowance for Bad Debts currently has OMR 600 debit balance.
| | | Not Yet Due | Days Past Due |
| Name of Customers | Total Balance | 1-30 | 31-60 | 61-90 | Over 90 |
| Total A/c Receivable | | | | | | |
| Bad Debts Rates | | | | | | |
| Uncollectable Amount | | | | | | |
(ii) Record the adjusting entry assuming that Allowance for bad debts currently has
OMR 6,300 credit balance.
| Allowance for Bad Debts |
| Account Title | Amount Dr. (OMR | Account Title | Amount Cr. (OMR) |
| | | | |
| Total | | Total | |
General Journal
| Date | Particulars | Debit OMR | Credit OMR |
| | | | |
- Record the adjusting entry assuming that Allowance for bad debts currently has
OMR 600 debit balance.
| Allowance for Bad Debts |
| Account Title | Amount Dr. (OMR | Account Title | Amount Cr. (OMR) |
| | | | |
| Total | | Total | |
General Journal
| Date | Particulars | Debit OMR | Credit OMR |
| | | | |
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