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Forums › FIA Forums › FA2 Maintaining Financial Records Forums › receivables
On 1 September 20×8, one of Abu’s customers had went into bankruptcy and Abu recorded and Irrecoverable Debt Expense of $700. By the year end of 31 December 20×8, Abu had subsequently received $200 of this amount which has been correctly accounted for. There were no other irrecoverable debts in the year.
The total credited to the profit or loss in respect of the irrecoverable debts and allowances for irrecoverable debts for the year ended 31 December 20×8 was $3000. The allowance for irrecoverable debts balance at 1 January 20×8 was $5400
What is the allowance for irrecoverable debts balance at 31 December 20×8?
What answer do you get? What does the book say?
the answer is 1900. this is my exam question