at dec 31 2008 a company receivable totaled $600000 and an allowance for receivable of $60000 had been brought down from the year ended dec 31 2007
it was decided to write off debts totaling 25000 and to adjust allowance for recievable 10%of the receivable
what change for ded and doughtfull debts should appear in the company income statement for the year dec 31 2008
ACCA Forums
FAF3 irrecoverable bed debt
10y ago#1The allowance required at the end of this year is 10% x (600,000 - 25,000) = 57,500
Therefore the expense for irrecoverable and doubtful debts is:
Irrecoverable debts 25,000, less the decrease in the allowance of 2,500 (60,000 - 57,500)
So a total expense of 22,500.
Our free lectures on irrecoverable and doubtful debts will help you. Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
Sign into reply to this topic.