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biksuju · Sep 23, 2009, 03:46 AM

1) A stock has revealed that several pairs of shoes on display become damaged, shoes with a book value of $1450 will now be sold for $600.
2) management believes that an amount of $1240 in account receivable will not be collected.
3) $3600 insurance policy was purchased on 1st of march 2007.it expires on 19 February 2008.business financial year is june-july.
4)wages cost $500 per week on balanced date. 3 days wages were owing.

danielnoahsmommy · Sep 23, 2009, 03:48 AM

Do your own homework. We will not do it for you. Read the site rules.

biksuju · Sep 23, 2009, 03:51 AM

I was just asking for the help.. give me some hints to do those question.. or may be u also don't know..

morgaine300 · Sep 23, 2009, 08:05 PM

When you have four different entries that are all different, there isn't much way to "give hints." It's based on a set of rules and from there it's interpretation, and each one is different.

The rules say to please attempt your work yourself first. Then post whatever you come up with and someone can take a look at it.

danielnoahsmommy · Sep 24, 2009, 02:13 AM

I have Been an accountant for about 18 years now, I know how to do such entries... If we do them for you, what will you learn? Being nasty won't help you on this site. An apology would be nice!

biksuju · Sep 24, 2009, 03:37 AM

OK I apologise for what I said... but actually I was in disturbed minded so I don't knoe what I wrote sorry for that... OK let me try then and just say weather the entries I am doing is wrong or right, if wrong then help me.. that will be better as well so that I can learn the mistakes...
1) there we can see loss i.e. inventory a/c dr inventory a/c cr
2) accounts receivable is based on always bad debts and provision for bad debts... bad bedts a/c dr, provision for bad debts a/c cr
3) insurance a/c dr , pprepaid insurance a/c cr
4) wages a/c cr, cost a/c cr

Is the entries I did are correct or not.. can you look and make my mistakes be right and help me with right hints.thankyou

rehmanvohra · Sep 24, 2009, 05:16 AM

Originally Posted by biksuju

1) A stock has revealed that several pairs of shoes on display become damaged, shoes witha book value of $1450 will now be sold for $600.
2) management believes that an amount of $1240 in account receivable will not be collected.
3) $3600 insurance policy was purchased on 1st of march 2007.it expires on 19 february 2008.business financial year is june-july.
4)wages cost $500 per week on balanced date. 3 days wages were owing.

After your last post, it seems that you have tried to mention your answer without applying your mind.

1. If you are using periodical method of inventory valuation, you do not need any entry at this stage. When the accounts are prepared just put the net realizable value (expected selling price less cost to make that sale). In the case of perpetual method, Debit Invetory valuation loss and credit Inventory $850

2. If allowance method is used, debit Allowance for doubtful debts and credit accounts receivable. If not, then debit bad debts expense and credit accounts receivable

3. When insurance was purchased what entry was made?
If prepaid has been debited on March 1, then debit Insurance expense and credit prepaid insurance for the expired portion (4 months?).
If debited to Insurance, debit prepaid and credit insurance expense for the unexpired portion of (8months?)

4. Provide for accrual of three days wages. Debit Wages, credit Wages payable

biksuju · Sep 24, 2009, 05:21 AM

Thank you so much now I knew where was my mistakes.. thanx a lot

morgaine300 · Sep 24, 2009, 05:58 PM

biksuju, I don't personally think you owe anyone an apology. I disagreed with what you were saying (which I already stated), but I don't think you were being "nasty." I wouldn't get too worried about it.