[sun]

Thank you for taking the time to explain the answer. Much appreciated.

[sun]

$
Specific allowance for receivables at 1 January 20,000
General allowance: 2.5% of (380,000-20,000). 9,000
29,000
General allowance at 31 Dec: 3% of 420,000. 12,600
Reduction in allowance for receivable. (16,400)
Irrecoverable debt written off 28,000
Combined expense in statement of profit or loss. 11,600

This is the working in the text book. I double check the question I have typed it up correctly.

[sun]

What is the charge in the statement of profit or Loss for the year 31 Dec for the allowance for receivables and irrecoverable debts?

[Author]

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