[augustinenyoni]

THANKS VERY MUCH

[augustinenyoni]

at 31 Dec 2005 the ledger of X Co. included a $5.376 allowance for receivables. During the year ended 31 Dec 2006 irrecoverable debts of $2040 were written off . Receivables balance at 31 Dec 2006 totaled $173760 and the company wished to carry forward a general allowance of 2%.
The total charge for irrecoverable debts and change in allowance for receivables in the 2006 statement of Profit or Loss is

A $98.4
B $139.2
C $3.904.8
D $5.515.2

[augustinenyoni]

Irrecoverable Debts

May you please clarify for me why answer to Test question # 2 is $139.2 instead of $98.40

[Author]

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