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The following extracts are taken from the financial statements of Hastings Ltd: Balance sheet as at 31 December 2018 31 December 2017 Assets '000 '000 Accounts receivable 27,990 18,000 Less Allowance for bad (4,892) (3,006) debts Net Accounts receivable 23,098 14,994 Notes: 1. All sales took place on credit. Sales during the year 2018 was 136,000 2. During the year 2018, a sum of 1,750 was uncollectible due to a customer filing for bankruptcy. Required: (a) Calculate the cash receipts from customers during the year 2018 (b) Calculate the impact on profits for the year 2018 arising from: i. Bad debts ii. Allowance for bad debts You may find the following table helpful for your calculations: Cash Assets Accounts receivable Allowance for bad debts Equity Profits (income statement) Opening bal 1.1.18 The following extracts are taken from the financial statements of Hastings Ltd: Balance sheet as at 31 December 2018 31 December 2017 Assets '000 '000 Accounts receivable 27,990 18,000 Less Allowance for bad (4,892) (3,006) debts Net Accounts receivable 23,098 14,994 Notes: 1. All sales took place on credit. Sales during the year 2018 was 136,000 2. During the year 2018, a sum of 1,750 was uncollectible due to a customer filing for bankruptcy. Required: (a) Calculate the cash receipts from customers during the year 2018 (b) Calculate the impact on profits for the year 2018 arising from: i. Bad debts ii. Allowance for bad debts You may find the following table helpful for your calculations: Cash Assets Accounts receivable Allowance for bad debts Equity Profits (income statement) Opening bal 1.1.18

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