Vill has trade receivables of $125000. At 31 Oct 2009, she discovered that one of her customers, Mr X, is bankrupt and cannot pay any of his $8000 debt. Another customer, Mr Y, is in financial difficulty and Vill has agreed that only half of the debt of $12500 should be paid.
What journal entry does Vill need to post to record the above?
Dr Irrecoverable debts $14250 Cr Receivable $14250
However, if this is another question from an exam that you have downloaded from the internet, then I am not prepared to answer any more of them (for the reason stated in my reply to your previous post).
Author
Posts
Viewing 2 posts - 1 through 2 (of 2 total)
The topic ‘Irrecoverable debts’ is closed to new replies.