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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
🙁 $1550Please explain your answer in detail as well.
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I completely agree with muradm. A perfect explanation.
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