Q1:Quill & Pens Stationery Pty Ltd decides to write off a debt of $450 from...
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Accounting
Q1:Quill & Pens Stationery Pty Ltd decides to write off a debt of $450 from one customer. Quill & Pens Stationery Pty Ltd adopts the Allowance Method of writing off a bad debt. What would be the effect on the relevant accounts if the $450 write off was not recorded? Group of answer choices
Overstate Accounts receivable by $450 and understate Doubtful Debt Expense by $450
Understate Accounts receivable by $450 and overstate Allowance for Doubtful Debts by $450
Overstate Accounts receivable by $450 and understate Allowance for Doubtful Debts by $450
Understate Accounts receivable by $450 and overstate Doubtful Debt Expense by $450
Q2
Trentham Transport purchases a new delivery truck for $80,000. The stamp and transfer duty is $3,000. The logo of the company is painted on the side of the truck for $500. The truck registration is $700 and a 12 month accident insurance policy is $1100. The truck undergoes safety testing for $330. What does Trentham Transport record as the cost of the new truck? Group of answer choices
$83,830
$80,000
$83,000
$85,630
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