A business started trading on 1 January 2022. During the two years ended 31 December 2022 and
Question:
A business started trading on 1 January 2022. During the two years ended 31 December 2022 and 2023, the following debts were written off to the bad debts expense account on the dates stated:
On 31 December 2022, the total trade receivables were £97,100. It was decided to make an allowance for doubtful debts of £3,230.
On 31 December 2023, the total trade receivables were £106,200. It was decided to make an allowance for doubtful debts of £4,010.
You are required to show:
(i) The allowance for doubtful debts account and the bad debts expense account for each of the two years.
(ii) The relevant extracts from the balance sheets as at 31 December 2022 and 2023.
Step by Step Answer:
1 2022 Dec 31 Balance cd 2023 Dec 31 Balance cd Allowance for ...View the full answer
Frank Woods Business Accounting An Introduction To Financial Accounting
ISBN: 9781292365435
15th Edition
Authors: Alan Sangster, Lewis Gordon, Frank Wood
