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Hi,
In the year ended 30/9/2008, Fauntleroy had sales of $7,000,000. Year end receivables amounted to 5% of annual sales. Fauntleroy wishes to maintain the allowance for receivables at 4% of receivables, and as a result discovers that the allowance is 20% higher than the previous year end.
During the year, irrecoverable debts amounting to $ 3200 were written off and debts amounting to $450 and previously written off were recovered. What is the irrecoverable debt for the year?
I understand the question up to 4% of receivables, but I need help by workings of solving the rest. Pls help me.
I don’t understand why you do not have the answer in the same book as you have the question?
Please ask which bit of the answer in your book that you do not understand.
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