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hi
the old figures are
allowance for receivable = 20
Receivable . = 100
Expense = 200the current figures are
new all. for .Rec = 26should the adjustment be
1- new allowance for rec = ( 26-20) + 20
= 26
2- CR receivable by 6 to have a DR balance of 96
3- DR expense by 6 to have a CR balance or 206
thx1. The new allowance is 26 (although I don’t know why you needed to do workings for it – the question tells you it is 26)
2. The double entry for increasing the allowance is CR Allowance 6; DR Irrecoverable Debts Expense 6.
I do suggest that you watch my free lectures on Irrecoverable and Doubtful Debts.
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