ACCA F3 IRRECOVERABLE EXPENSE
On 31 March 2014, the balance on the receivables control account of P Company is $300,000. The
bookkeeper has identified that the following adjustments for receivables are required:
Irrecoverable debt recovered $1,000
Specific allowance $4,000
It was decided that a further allowance for receivables of 6% should be made based on past events. The
allowance for receivables on 1 April 2013 was $5,000.
What was the receivables expense for the year ended 31 March 2014?
$ | $ | |
Trade receivables | 300,000 | |
Less Write Off | 4,000 | 4,000 |
296,000 | ||
6% New Allowance | 17,760 | 17,760 |
Year End Receivables in Financial Position | 278,240 | |
Less opening balance allowance for receivables | (5,000) | |
Less Irrecoverable debt recovered | (1,000) | |
Irrecoverable expenses in Income statement | 15,760 |
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