Principles of Accounting

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Assignment (2)

Deadline:

Course Name: Principles of AccountingStudent’s Name:
Course Code: ACCT 101Student’s ID Number:
Semester: CRN: 35054
Academic Year:

For Instructor’s Use only

Instructor’s Name: Dr. Shahid Husain
Students’ Grade:           /15Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
  • Submissions without this cover page will NOT be accepted.

Assignment Question(s):                                                                 (Marks 15)

Q1. As a consultant for XYZ Company, a medium-sized retail business, what steps would you take to evaluate and improve its internal control procedures and safeguard its assets?                                                                                                                                                           (5 Marks)

Q2. XYZ Company, a retail business, is facing challenges with bad debts and wants to analyze the impact on its financial statements using the allowance method. Here are the relevant figures in Saudi riyals:                                                                                               (5 Marks)

Total Credit Sales: 800,000 SAR

Beginning Allowance for Doubtful Accounts: 10,000 SAR

Bad Debts Written Off: 15,000 SAR

Ending Accounts Receivable: 120,000 SAR

Bad Debts % (Estimated): 3%

Question:

  1. Calculate the bad debts expense for the period,
  2. Determine the net realizable value (NRV) of accounts receivable,
  3. Analyze the impact of bad debts on the financial statements, and provide recommendations to manage and reduce bad debts.

Q3. XYZ Company, a manufacturing firm in Saudi Arabia, wants to evaluate its fixed asset management using the straight-line depreciation method. Here are the relevant details in Saudi Riyals (SAR):                                                                                                                        (5 Marks)

Total Fixed Assets: SAR 1,500,000             Accumulated Depreciation: SAR 500,000

Useful Life: 10 years                                     Salvage Value: SAR 100,000

Question: Calculate the book value and the annual depreciation expense of the fixed assets, analyze the impact of fixed assets on financial statements, and provide recommendations to optimize fixed asset management.