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Braskem S.A., a large Brazilian petrochemical company, reported a balance R$1,594.9 million in Accounts Receivable at...

Braskem S.A., a large Brazilian petrochemical company, reported a balance R$1,594.9 million in Accounts Receivable at the beginning of 2013 and R$1,497.0 million at the end of 2013. Its income statement reported total sales revenue of R$12,134.5 million at the end of 2013. Braskem applies IFRS and reports its results in thousands of reals (R$), the Brazilian currency. Assuming that Braskem makes all sales on account, present journal entries that account for all changes in accounts receivable during 2013

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Expert Solution

Journal Entries
Date Particulars Debit R$ (thousands) Credit R$(thousands)
a. Accounts Receivable A/C - Dr 12134500
Sales A/C - Cr 12134500
(Being sales for the year)
b. Cash A/C - Dr 12232400
Accounts Receivable A/C - Cr 12232400
(being amount collected from customers throughout the year)
(See working Note)
Working Note (T Account)
Account Receivables A/C
Particulars R$ (thousands) Particulars R$ (thousands)
To Balance b/f 1594900 To Cash A/C (Banalcing figure) 12232400
To Sales A/C 12134500 To Balance c/f 1497000
13729400 13729400
Another way to do the same working as above
Opening Receivables 1594900
Add: Sales 12134500
Less: Closing Receivables 1497000
12232400

ekkarill92 answered 1 year ago
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