2 correct answers

Martin Rorke is reviewing the results of the review of subsequent cash receipts. There are several receipts listed from customers that were considered doubtful at the end of the year Ounc 30). Martin is also reviewing evidence that shows that another customer that had a large balance at year end was unexpectedly declared bankrupt on July 10 None of the balance owing at June 30 will likely be collected Which of the following describes how this information should be reflected in the financial statements? The full amount of the subsequent payments from debtors should be reflected as a receivable amount at the June 30th year end Both items should be disclosed in the notes to the financial statements, but no adjustments to the June 30th financial statements should be made Any June 30th receivable balance related to the customer who declared bankruptcy on July 10+ should be written off for the year ended June 305 The amount of the receivable balance for the customer who dedored bankruptcy should be written off on July 10, the date the company declares bankruptcy The subsequent payments made on receivables that were considered the should be noted in the notes to the financial statements, but no adjustment to June 30 balance she should be made