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Hi,
1. can you put allowance for trade receivables (doubtful debt) and bad debt written off, under operating expenses in the income statement when it asks for an extract, or is that wrong?
e.g
extract for income statement for year ended 31 March 2015
less operating expenses £
bad debt written off x
allowance for trade receivables x
2. Also for extract of balance sheet as at 31 March 2015, is it wrong to say
‘less allowance for trade receivables’ and put it the amount in ( ) rather than
‘allowance for trade receivables’ ( ). ?
thank you.
1 That is fine (although it is only the change in the allowance, together with the bad debt). If the examiner wants it shown differently then he will say so in the question.
2. It does not matter – as long as you do subtract the amount 🙂
hi there,
I wanted to check what the less operating expense means.1. does putting a title less operating expense mean that all the figures below it is automatically considered as negatives? i.e therefore, I do not need to put them as a ( ) each time?
2. less operating expense
allowance for trade receivables (300)or
less operating expense
allowance for trade receivables 3003. if I have to write down the allowance for trade receivables, is it:
income statement (extract) $
less operating expense
allowance for trade receivables written down 300or
income statement $
less operating expenses
allowance for trade receivables written down (300)thank you
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