A company started the year with total receivables of $87000 and an allowance for receivables of $ 2500.
During the year, two specific debts were written off, one for $800 and the other for $550. A debt of 350 that had been written off as irrecoverable in the previous year was paid during the year. At the year end, total receivables were $90000 and the allowance for receivables was $2300.
What is the charge to the income statement for the year in respect of irrecoverable and doubtful debts?
A: $800
B: $1000
C: $1150
:( $1550
Please explain your answer in detail as well.
During the year, two specific debts were written off, one for $800 and the other for $550. A debt of 350 that had been written off as irrecoverable in the previous year was paid during the year. At the year end, total receivables were $90000 and the allowance for receivables was $2300.
What is the charge to the income statement for the year in respect of irrecoverable and doubtful debts?
A: $800
B: $1000
C: $1150
:( $1550
Please explain your answer in detail as well.
