Hello John,
If a question says the receivables allowance is to be adjusted to 1.5% of the remaining balance, how would that be handled? Would the balance increase or decrease by the percentage?
Many thanks ?
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Allowance for doubtful debts
3y ago#1The allowance will be 1.5% of the final balance on the receivables account. Whether this requires an increase or decrease in the allowance depends on what the allowance balance brought forward was.
Have you watched my free lectures on this?
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