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Hi
can you help me with this as well. I have tried but no hope in finding the answer.33. Jessie’s trial balance @ 30 September 2000 included:
Debit Credit
Receivables ledger control account $90,350
Allowance for doubtful debts (brought forward) $2.400
1) No entries have been made in respect of cash $1,320 received from Jeffery whose balance has been written off last year
2) At 30 September 2000 an irrecoverable balance of $1,950 is to be written off and the receivable allowance is to be adjusted to 1.5% of the remaining balances
What figure will be reported in the statement of financial position for receivablesSorry the allowance for doubtful debts (brought forward) is wrong it should be $2490sorry about that.
Chris
the irrecoverable balance needs to be written of so this is deducted from the RLCA of £90350
£90350 – £1950= £88400closing allowance of is 1.5% of £88400= £1326
– the closing receivables allowance in the sfp will be £87074 (£88400 – £1326)– the entry of £1320 of cash will have nothing to do with RLCA because it has already been written off last year so they have accounted for that not being received.
hope this helps.
the irrecoverable balance needs to be written of so this is deducted from the RLCA of £90350
£90350 – £1950= £88400closing allowance of is 1.5% of £88400= £1326
– the closing receivables allowance in the sfp will be £87074 (£88400 – £1326)– the entry of £1320 of cash will have nothing to do with RLCA because it has already been written off last year so they have accounted for that not being received.
hope this helps.
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