The information in the following table relates to the accounts receivable and allowance for doubtful debts of
Question:
The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. Ignore GST. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for Doubtful Debts account on 1 July 2014 was $10000.
June 2015 | June 2016 | ||
Accounts receivable Bad debts written off for past year Required balance of Allowance for Doubtful Debts Increase/decrease in allowance required Allowance for doubtful debts at 30 June | $400 000 $12 000 (a) (b) (c) | $450 000 $15 000 (d) (e) (f) |
Required
Determine the missing amounts in the table.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
