Bkar1013 Financial Accounting And Reporting Assessment Answer
Lampu Terang Bhd is one of the largest electrical and electronic distributors in Malaysia that was established in 1975s. The company has been listed in the Bursa Malaysia in the beginning of year 2019. Besides conventional way of selling goods via its outlets throughout the nation, Lampu Terang Bhd also sell its goods online through its website. Mr Johan joined the company as a new Accountant on 30 June 2020. The previous head of accountant has left the company at the end of 2019.
PART 1
Currently, Lampu Terang Bhd is employing periodic inventory system in managing and recording its inventory. Mr Johan is not happy with the current system because the latest amount of inventory and cost of goods sold is not available at any point of time. The perpetual system able to verify inventory balances in real-time and it can be used to monitor trends in the usage patterns and alter procurement plans accordingly. However, Mr. Johan is concerned about the upfront costs associated with implementing a new system. Mr Johan is thinking whether it should change its old inventory system to perpetual inventory system.
Lampu Terang Bhd was just recently listed in Bursa Malaysia. Mr Johan have to make sure that the company remain attractive to investors. Therefore, he aimed to report a higher amount of profit. Mr. Johan also noticed that the purchase cost for merchandise is keep increasing and he believed that this scenario will affect the amount of profit for LampuTerang Bhd. He also realised that the choice of inventory cost flow assumption will also affect the company’s profit. Mr Johan was in a dilemma whether it should change its inventory cost flow assumptions from average cost basis to First-in-First-out (FIFO). Mr Johan asked Miss Meena to advise him on that matter.
The following information has been extracted from the records of Lampu Terang Bhd about one of its new products; Moderna Vacuum for the month of January 2020.
|
Purchased 5,000 units from a supplier at the total cost of RM150,000. The purchase was made by cash. | |
|
3 January |
Sold 2,500 units to Hotel Meera Sdn Bhd by credit at a price of RM45 per unit. |
|
11 January |
Purchased 2,000 units from a BangGo Enterperise at a price of RM32 per unit. The purchase was made by cash. |
|
20 January |
Received payment from Hotel Mesra Holdings. |
|
23 January |
Sold 5,000 units to CleaningKu Bhd by credit at a price of RM45. |
|
28 January |
Purchased 1,500 units from VacuumTop Sdn Bhd at the total cost of RM52,500. The credit terms given was 2/10, n/45. |
PART 2
Mr Johan have reviewed the draft account for 2020 and noticed that the company was in financial difficulties at the beginning of the year. Therefore, the company used its account receivables as a means of obtaining cash to continue its operations. The following is information related to selected activities for the month of January until March 2020.
|
15 Jan The clients Terbaik Bhd forwarded a notice to Lampu Terang Bhd asking for longer credit period. The sales amounting RM290,000 is for previous month sales. Lampu Terang Bhd agreed to extend the credit period and convert the remaining balance of account receivable to 10%, 120-day Note Receivable. 1 Feb Lampu Terang Bhd factored with recourse RM150,000 of account receivable for a cash proceed of RM140,000 to the Adawiyah Bank Berhad. Adawiyah Bank Berhad withheld 8% of account receivable as protection against sales return and allowance. The difference between factored account receivable and cash proceed is considered as a finance charge. 29 Feb Adawiyah Bank Berhad manage to collect RM136,000 of the factored account receivable, which include sales return and allowance of RM5,500. The remaining balance of account receivable is uncollectible. Settlement of factored accounts receivable was done on this date. 1 March Lampu Terang Bhd assigned RM90,000 of its account receivable as collateral on a RM70,000, 12% loan from Adawiyah Bank Berhad. A commission of 6% on the face amount of loan was charged. 30 March Collect RM74,000 of account receivable assigned and remitted it to Adawiyah Bank Berhad. |
Mr Johan retraced the recording of the above transactions and he finds out that the related transactions are properly recorded. Mr Johan also performed extensive review on the “notes to account”. After reviewed the notes to accounts for Trade and Other Receivables, Mr Johan noticed that the allowance for bad debts expenses for 2020 remained the same as previous years. It provides clues to possible error in recording. For the past few years, 2% of account receivables are estimated to be uncollectible and the company uses the percentage of receivables method to estimate the bad debt expense. The following is the notes to the accounts for trade and other receivables.
Buy Bkar1013 Financial Accounting And Reporting Assessment Answers OnlineTalk to our expert to get the help with Bkar1013 Financial Accounting And Reporting Assessment Answers to complete your assessment on time and boost your grades now The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services. Get Online Support for Bkar1013 Financial Accounting And Reporting Assessment Answer Assignment Help OnlineResources
|
