Question 3 (15 marks) AQ Sportz sells a wide range of equipment for water sports. Inventory is sold for both cash and
credit. The following information relates to Accounts Receivable for April 2019:
The Accounts Receivable balance as at 1 April 2019 was $7 800.
The Accounts Receivable balance as at 30 April 2019 was $9500.
The Receipts from Accounts Receivable were $13400.
The Discount Expense was $200.
The Discount Revenue was $140.
The Allowance for Doubtful Debts had a balance of $1 400 on 1 April 2019.
$1200 was written off as Bad Debts in April.
The Allowance for Doubtful Debts is 5% of net credit sales.
Using the information above, reconstruct the Accounts Receivable ledger account and
determine the Credit Sales for April 2019.
6 marks
b.
Record the General Journal entry required to prepare the Allowance for Doubtful Debts for
May 2019 (Memo 67).
A narration is not required.
3 marks
The following graph shows the Accounts Receivable Turnover (in days) for AQ Sportz over
the six-month period from December 2018 to May 2019.​

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Read the following paragraph, and choose the best revision for one of its sentences. dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?