a. TechCom had credit sales of $300,000 during its first year of operations. At the...
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a. TechCom had credit sales of $300,000 during its first year of operations. At the end of the first year, $20,000 of credit sales remained uncollected. Based on the experience of similar businesses, TechCom estimated that $1,500 of its accounts receivable would be uncollectible. Record journal entry. [5 Marks]
b. TechCom determines on January 23 that it cannot collect $520 owed to it by its customer J. Kent. Record journal entry. [4 marks]
c. On 1 October 2007 Mohan Ltd purchased a machine for $60,000 + GST. Installation cost was a further $7,400 + GST. It is estimated that the machine will provide equal benefit each year over its 5-year service life and be disposed of for $8,000. Calculate depreciation for the year ending 30-06-2008. [5 Marks]
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