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Matt’s accounts at 30 November 20X8 show a closing Trade Receivable balance of $29000.
He wants to implement a general allowance of 2% of trade receivables at the year end but he has not yet dealt with the following items:
He has discovered Duncan went bankrupt on 29/11/X8. His balance of $650 is included at the year end.
Matt received $300 from Becks Limited, for a debt which he had written off on 26 May 20X7.
He wishes to specifically provide for 60% of the debt of $800 due from Cat.
What is the amount to be charged to the Income Statement in regard to Bad & Doubtful debts for the year ended 30 November 20X8?
Sir for the allowance why dont we calculate the general allowance on the (29000-650-480), why do we subtract the entire 800? whats the logic
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