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1)The accounts for the year ending 30 November 2016 of Human Inc included a provision for doubtful debts at that date of $1800. During the
1)The accounts for the year ending 30 November 2016 of Human Inc included a provision for doubtful debts at that date of $1800. During the year ending 30 November 2017, the company received $1000 from Michael towards the settlement of a debt of $1400, which had been written off as irrecoverable by the company in 2015. There is no evidence that Michael will be able to make further payments to the company. Trade debtors at 30 November 2017 amounted to $44,000, which includes the following debts it has now been decided to write off as bad: John $800 Sally $300 In its accounts for the year ending 30 November 2017, the company is to continue its policy of maintaining a provision for doubtful debts of 10% of debtors at the year end. Required: (a) Prepare the journal entries in the books of the company necessitated by the receipt from Micheal. Assume cash receipts are journalized. (b) Prepare the provision for doubtful debts account in the books of the company for year ending 30 November 2007 (c) Show the entry for debtors which will be included in the balance sheet as at 30 November 2007 of the company
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