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Trade receivable at 31.12.2005 were 76,000. You are told that
a) An Irrecoverable debt of 3,000 is to be written off
b) Specific allowances of 700 and 2300 are to be made against two doubtful debts
c) A general allowances of 6% is to be maintained. The OB balances on the allowances account is 4000
d) debt of 1500 which was written off as irrecoverable in 2004 has now been paid in full
Prepare trade receivables, irrecoverable debts expenses and receivable allowance accounts for the year ended 31.12.2005Please do not simply type out full questions and expect to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Everything needed to be able to answer this question is explained in my free lectures on irrecoverable and doubtful debts. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
(Although it is important that you understand the double entries, you obviously cannot ever be asked to write up the accounts in the exam.)
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