Question 5 Part B. 

For the financial year ended 30 June 2025, the credit manager increased the bad debt expense estimate to 3% of credit sales. In the past, the company used 2% of credit sales. Provide TWO reasons for why the company might be using a larger percentage for the financial year ended 30 June 2025 (2 marks)

Question 5 Part A. 

Prepare

the CURRENT ASSETS section of the balance sheet for James Russell Ltd as at 30

June 2025.

Question 4 [6 Marks]

Required: Based on the trial balance, record the closing journal entries for Poodle Ltd. (6 marks)

Question 5 Part B. 

F

or the financial year ended 30 June 2025, the credit manager increased

the bad debt expense estimate to 2% of credit sales. In the past, the company

used 1% of credit sales. Provide

Question 5 Part A. 

Prepare the CURRENT ASSETS section of the balance sheet for James Russell Ltd as at 30 June 2025. (4 marks)

Question 4 [6 Marks]

Required: Based on the trial balance, record the closing journal entries for Poodle Ltd. (6 marks)

Question 4 [6 Marks]

Required: Based on the trial balance, record the closing journal entries for Poodle Ltd. (6 marks)

Question 3 Part B. 

Prepare the journal entry for writing off the $12,000 when the customer

went bankrupt (- remember the company used Allowance method). Based on the

entry, explain how this write-off transaction affects the company’s total

assets

Question 3 Part A. 

Record the journal entry for bad debt expense for the year ended 30 June

2025.

Question 3 Part B. 

Prepare the journal entry for writing off the $15,000 when the customer

went bankrupt (- remember the company used Allowance method). Based on the

entry, explain how this write-off transaction affects the company’s total

assets