The following data are available about the firms trade receivables: The balance of trade receivables as at
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The following data are available about the firm’s trade receivables:
The balance of trade receivables as at 31 December is £48,000.
However, this total includes an amount of £1,200 which is to be written off as an irrecoverable debt.
In addition, the firm has an existing balance on its allowance for doubtful debts of £1,100 and it wishes to maintain the value of this allowance at 2% of outstanding trade receivables at the year-end.
What would be the balance of trade receivables on the balance sheet?
How much would appear in respect of these entries in the income statement?
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Allowance for doubtful debts 48000 1200 4 1872 Bal...View the full answer
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