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WorksheetsAFIOTR Basic
Total questions: 14
Worksheet time: 32mins
Trade receivables refer to
credit customer who still owe business money
goods sold to customer on cash basis
supplier of goods
debts owing to supplier
What's the double entry to record creation of AFIOTR?
Dr Trade receivable, Cr AFIOTR
Dr Impairment loss on TR, Cr AFIOTR
Dr AFIOTR, Cr Trade receivable
Dr AFIOTR, Cr Impairment loss on TR
AFIOTR refer to
customer who has paid back the money to business
credit customer who still owe business money
estimated trade receivables who are likely to be uncollectible
credit customer who has gone bankrupt
What's the double entry to record cheque received from trade receivables ?
Dr Trade receivable, Cr Cash at bank
Dr Cash at bank, Cr Trade receivable
Dr Cash at bank, Cr Sales revenue
Dr Cash at bank, Cr Inventory
What's the double entry to record increase in AFIOTR?
Dr Trade receivable, Cr AFIOTR
Dr Impairment loss on TR, Cr AFIOTR
Dr AFIOTR, Cr Trade receivable
Dr AFIOTR, Cr Impairment loss on TR
What's the double entry to record decrease in AFIOTR?
Dr Trade receivable, Cr AFIOTR
Dr Impairment loss on TR, Cr AFIOTR
Dr AFIOTR, Cr Trade receivable
Dr AFIOTR, Cr Impairment loss on TR
What's the double entry to write off of the debt of a credit customer who has gone bankrupt?
Dr Trade receivable, Cr AFIOTR
Dr Impairment loss on TR, Cr AFIOTR
Dr AFIOTR, Cr Trade receivable
Dr AFIOTR, Cr Impairment loss on TR
What's the double entry to record increase in AFIOTR?
Dr Trade receivable, Cr AFIOTR
Dr Impairment loss on TR, Cr AFIOTR
Dr AFIOTR, Cr Trade receivable
Dr AFIOTR, Cr Impairment loss on TR
Which accounting theory/theories explain the need to have Impairment loss on trade receivables?
Consistency theory
Matching theory
Prudence theory
Accounting entity theory
On 31 Dec 2019, the AFIOTR of JY trading was estimated at 5% of $2000. On 31 Dec 2020, the AFIOTR was estimated at 5% of $3000.
Calculate the impairment loss on trade receivables for the year ended 31 Dec 2020.
(a)
On 31 March 2020, the AFIOTR of TW Trading was estimated at $300. On 31 March 2021, total trade receivables amounted to $6 000. The business decided to make AFIOTR based on 4% of trade receivables at year end.
Calculate the AFIOTR for the year ended 31 March 2021.
(a)
On 1 Jun 2020, SBC trading started stationery retail business. On 31 May 2021, total trade receivables amounted to $2 000. The business decided to make AFIOTR based on 6% of trade receivables at year end.
Calculate the net trade receivables for the year ended 31 May 2021.
(a)
On 31 Dec 2019, the AFIOTR of JY trading was estimated at 5% of $2000. On 31 Dec 2020, the AFIOTR was estimated at 5% of $3000.
Calculate the AFIOTR for the year ended 31 Dec 2020.
(a)
Impairment loss on trade receivables refers to
the amount lost
customer went bankrupt
customer cannot pay
the change in estimated uncollectible debts
