[Avishay]

The first part I did that is:
Depreciation charge per year = $(1600 000-7000)/8 yrs= $ 191250 per year

But the second part I am confused.

[Avishay]

Thanks sir.

[Avishay]

But Sir there is not opening allowance?

[Avishay]

No Sir, I reassure you you that in the book prepared by a teacher there is no Answer. Sir could you give me the steps in solving the question and it’s final answer.

[Avishay]

Sir another question to clear my mind.

At 31 Dec 2004 a company’s trade receivable totalled $ 864 000 and the allowance for receivable was $ 48000.

It was decided that debts totalling $ 13000 were to be written off, and the allowance for receivables adjusted to 5% of the receivables.

What figures should appear in the statement of financial position for trade receivables( after deducting the allowance)?

[Avishay]

Thank you very much sir.
I am grateful to you for your help

[Avishay]

Sir if it would be a decrease in allowance then?

[Avishay]

Sir the question is:
In the year ended 30 September 20X8, Welbeck had sales of $ 7,000,000. Year end receivables amounted to 5% of annual sales. Welbeck wishes to maintain the allowance for receivables at 4% of receivables and as a result discovers that the allowance is 20% higher than at the previous year end.

During the year irrecoverable debts amounting to $ 3,200 were written off and debts amounting to $ 450 and previously written off were recovered.

What is the irrecoverable debt expense for the year?

Can you explain me step by step sir?

[Avishay]

a question sir

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