ACCA F3 IRRECOVERABLE EXPENSE
On 31 March 2014, the balance on the receivables control account of P Company is $250,000. The
bookkeeper has identified that the following adjustments for receivables are required:
Irrecoverable debt recovered $7,000
Specific allowance $8,000
It was decided that a further allowance for receivables of 8% should be made based on past events. The
allowance for receivables on 1 April 2013 was $10,000.
What was the receivables expense for the year ended 31 March 2014?
$ | $ | |
Trade receivables | 250,000 | |
Less Write Off | 8,000 | 8,000 |
242,000 | ||
8% New Allowance | 19,360 | 19,360 |
Year End Receivables in Financial Position | 222,640 | |
Less opening balance allowance for receivables | (10,000) | |
Less Irrecoverable debt recovered | (7,000) | |
Irrecoverable expenses in Income statement | 10,360 |
To do the same topic again in ACCA F3 Irrecoverable Expense
To do another topic in ACCA F3