May I know how to do this question ?
Arrow plc had a receivables balance of $7050 at 31 December 20x0.During the year $500 was received in respect of a debt previously written off, and a specific debt of $495 was allowed for.The allowance brought down as at 1 January 20x0 was $1000.
What is the irrecoverable debts for the the year ended 31 December 20x0 ?
Ask the Tutor ACCA FA
Receivable and allowance
9y ago#1I don't think you can have copied the question properly!
On what you have typed, there are no irrecoverable debts during the year (only a previously irrecoverable debt recovered and a specific doubtful debt). Also there is no mention of a general allowance at the end of the year - this is possible but unusual.
Please check that you have copied the question correctly.
(Also, have you watched my free lectures on irrecoverable and doubtful debts? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.)
Sign into reply to this topic.