[slaughterofsoul]

Thanks for your detailed answer 🙂

[slaughterofsoul]

A company started the year with total receivables of $87000 and an allowance for receivables of $ 2500.

During the year, two specific debts were written off, one for $800 and the other for $550. A debt of 350 that had been written off as irrecoverable in the previous year was paid during the year. At the year end, total receivables were $90000 and the allowance for receivables was $2300.

What is the charge to the income statement for the year in respect of irrecoverable and doubtful debts?

A: $800
B: $1000
C: $1150
🙁 $1550

Please explain your answer in detail as well.

[Author]

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