Willie uses an age profile of debtors to calculate his provision for doubtful debts. He provides the

Question:

Willie uses an age profile of debtors to calculate his provision for doubtful debts.

He provides the following information for the year ended 31 May 20*8, on which to base the calculation.

Required

a) Calculate the provision for doubtful debts.
b) Prepare a balance sheet extract showing how the provision is treated.

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Introducing Accounting For AS

ISBN: 9780340959404

2nd Edition

Authors: Ian Harrison

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Question Posted: Aug 23, 2023 04:37 AM

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Willie uses an age profile of debtors to calculate his provision for doubtful debts. He provides the

Question:

Time outstanding Amount owed Provision for doubtful debts 0-1 month £23,400 1% 1-3 months £12,900 2% 3-6 months £1,270 3% 6 months- 1 year £730 5% over 1 year £640 20%

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a Calculation of Provision for Doubtful Debts Time Outstanding Amount Owed Prov...View the full answer

Introducing Accounting For AS

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