Andrea prepares a sales ledger control account. At 30 September 2011 the following information is available: $ Trade receivables at 1 October 2010 25000 Credit sales for year 80000 Receipts from credit customers for year 75000 Trade receivables at 30 September 2011 30 000

1. (a)Prepare the sales ledger control account for the year ended 30 September 2011. Andrea Sales Ledger Control account[4]
2. (b)State two reasons why Andrea prepares a sales ledger control account. 1 2[4]
3. (c)On 30 September 2011, after preparing the sales ledger control account Andrea was advised that Keira is unable to pay the whole of her debt, $2500. Andrea accepted $500 in full settlement and the balance of the debt was written off. Prepare the journal entry to record the transactions on 30 September 2011. A narrative is not required. Journal Dr $ Cr $[3]
4. (d)Andrea carried out a review of her remaining trade receivables before preparing her financial statements. The following information relating to her debtors was available: Analysis of balances $ Age of debt George 11500 One month Ranjula 9500 Two months Harry 5000 Four months Trupti 1500 Eight months 27500 Andrea has the following policy for calculating the provision for doubtful debts: Age of debts % Up to 3 months 2 3-6 months 10 Over 6 months 20 REQUIRED Calculate the value of the provision for doubtful debts at 30 September 2011.[4]
5. (e)On 1 October 2010 the balance of the provision for doubtful debts account was $1300. Prepare the provision for doubtful debts account for the year ended 30 September 2011. Bring down the balance on 1 October 2011. Andrea Provision for doubtful debts account[3]
6. (f)Name two accounting principles which Andrea is applying by maintaining a provision for doubtful debts. 1 2[2]