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10. In 2017 Norman Pty Ltd had net credit-sales of $75 000. On 1 July 2016, the Allowance for Doubtful Debts had a credit balance
10. In 2017 Norman Pty Ltd had net credit-sales of $75 000. On 1 July 2016, the Allowance for Doubtful Debts had a credit balance of $1800. During 2017, $3000 of uncollectable accounts receivable were written off. Ageing of accounts receivable revealed that the allowance should 8% he balance in receivables. If the accounts receivable balance at 30 June 2017 was $20 000, what is the required adjustment to the Allowance for Doubtful Debts at 30 June 2017? $1600 (b) $7500. (c) $2800. (d) $3000. allortable
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