ACCA F3 IRRECOVERABLE EXPENSE 2
At 31 December 2014 a company's receivables totalled $250,000 and an allowance for receivables of $5,000 had been brought forward from the year ended 31 December 2013.
It was decided to write off debts totalling $9,000 and to adjust the allowance for receivables to 3% of the receivables.
What charge for receivables expense should appear in the company's statement of profit or loss for the year ended 31 December 2014?
| $ | $ | |
| Trade receivables | 250,000 | |
| Less Write Off | 9,000 | 9,000 |
| 241,000 | ||
| 3% New Allowance | 7,230 | 7,230 |
| Year End Receivables in Financial Position | 233,770 | |
| Less opening balance allowance for receivables | (5,000) | |
| Irrecoverable expenses in Income statement | 11,230 |
To do the same topic again in ACCA F3 Irrecoverable Expense 2
To do another topic in ACCA F3